New Delhi, Oct. 1 -- The government on Wednesday approved a hike in dearness allowance for its employees, increased the minimum support price for key crops, and okayed a mission to boost pulses output in the country, in decisions that will cost the Centre Rs.1.2 trillion.

In a festival-season bonanza, the Union cabinet approved a 3% increase in the dearness allowance (DA) and dearness relief (DR) for central government employees and pensioners.

Effective 1 July, the DA stands at 58% of the basic pay, and would benefit about 4.92 million employees. Similarly, the DR would benefit 6.87 million pensioners of the government, Ashwini Vaishnaw, minister for information and broadcasting, told media after the cabinet meeting. The increase in DA...