DA Merger in 2004

Finance Ministry Annual report for 2004 states that HRA was also increased after merger. So it is expected that HRA will also increase after merger of 50 % DA in Pay:

SALIENT FEATURES

1. The total expenditure on Pay and Allowances (excluding Productivity Linked Bonus/Ad-hoc Bonus, Honorarium, Encashment of Earned Leave and Travelling Allowance) for Regular Central GovernmentCivilian employees including employees of the Union Territories was Rs.38652.81 Crore in 2004-2005 as compared to Rs.34554.35 Crore in 2003-2004. Thus, there is an increase in expenditure by Rs.4098.46Crore over the previous year, which in relative terms works out to  11.86 per cent. This increase in the

Expenditure on pay and allowances over the previous year is primarily due to the merger of 50% D.A. w.e.f. 1.4.2004 as Dearness Pay and resultant increase in H.R.A & CCA.
 Link http://finmin.nic.in/pru/BROCHURE/brochure2004-05.pdf

Fro more see 

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