Decision to raise the DA was taken at a meeting of state Cabinet presided over by Chief Minister Nitish Kumar here.

From July 1 the employees and pensioners will get 90 percent DA in place of 80 now, Principal Secretary Cabinet Coordination Brajesh Mehrotra said.

Mehrotra said that the DA hike would cost the state government an additional Rs 850 crore.

The Cabinet gave its nod for extension of terms of commission constituted for Kosi flood tragedy and judicial commission probing violence in Madhubani in the wake of the rumour of death of two youngsters, who were later found in Delhi.

While period of Kosi commission has been increased from October one to March next year and that on Madhubani from October 18 this year to April 17, 2014, Mehrotra said.

(Agencies)

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