The Union Cabinet on 19 March 2009 agreed to an 8 per cent hike in the Dearness Allowance for all central government employees and pensioners. This is as per the recommendations of the Sixth Central Pay Commission, regarding the salaries of the central government employees. This new hike, as announced by the Minister for Information and Broadcasting, Ambika Soni, will be over the existing rate of 27 per cent of the basic pay or pension. This will benefit about 50 lakh government employees and about 38 lakh pensioners and will cost the exchequer Rs 6,969.36 crores per annum. The DA hike was seen as necessary by the Sixth Pay Commission to lessen the gap and disparity between the salaries of the private sector and the government employees and in view of the current inflation rate. The increase will be effective from 1 January 2010. The decision was taken by the cabinet, considering the uncontrollably high inflation rates. There was a sense of jubilation in all government offices. Especially happy were the retired government personnel, who were reeling under the pressure of the excessively high current inflation rates.