New Delhi, March 24: The government has hiked dearness allowance for central government employees and pensioners by 3 per cent, a day ahead of Holi.

Information and broadcasting minister S. Jaipal Reddy said the rise from 14 per cent to 17 per cent would come into force with retrospective effect from January 1 this year.

The hike will entail an additional expenditure of Rs 1,608 crore.

Reddy said the annual expenditure for 2005-06 would be pegged at Rs 1,874.28 crore as the hike is being applied with retrospective effect.

The cabinet meeting, chaired by Prime Minister Manmohan Singh, decided to increase the allowance from 14 per cent to 17 per cent.

Reddy said the extra burden following the increase in dearness allowance is estimated at Rs 1,146.24 crore per annum; and Rs 1337.28 crore in 2005-06. The additional financial implications on account of the increase of dearness relief to pensioners are estimated at Rs 462 crore a year and Rs 537 crore in 2005-06.

Child rights panel

The cabinet today gave the green signal to set up a national commission for children?s rights, which has been on the anvil for over three years.

The commission, which will oversee the implementation of the national charter of children?s rights, will look into issues of health, nutrition and education of children. It will also have powers to recommend remedial action in cases of violation of children?s rights.

Children?s rights activists have welcomed the move. While most of them have not yet seen a copy of the draft bill, they welcomed the suggestion that the panel would have a statutory status. ?It is better not to have a commission rather than have one without teeth,? Enakshi Ganguly of Haq, a non-government organisation working in the field, said.