KATHMANDU, MAY 29

The government has raised the monthly dearness allowance for civil servants to Rs 5,000, effective from mid-July, while ruling out a direct salary hike citing pressure on resource management.

Presenting the budget for fiscal year 2082/83 at the joint session of the federal parliament on Wednesday, Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel said that a salary increment was not feasible this year.

"Despite recognizing the need to revise civil servants' benefits in line with the times, resource constraints have made it difficult to increase salaries as expected," he said. "Nevertheless, the dearness allowance has been raised for all civil servants."