Kolkata, Dec 7 (IANS): The cash-strapped West Bengal government will give a fresh instalment of ten percent of dearness allowance arrears to its employees from January next year, Chief Minister Mamata Banerjee announced here Wednesday.

"This will entail an additional expenditure of Rs.250 crore per month or Rs.3,000 crore annually," Banerjee told media persons at the state secretariat, Writers' Buildings.

Describing it as a "New Year gift" to the state government employees, she regretted that they were now lagging behind their counterparts in the central government by 23 percent as far as DA was concerned.

"Our financial position, thanks to the previous (Left Front) government, is precarious. It has left us burdened with a debt of Rs.2.03 lakh crore. But we will pay all the arrear DAs slowly," said the chief minister.

In August this year, the new Trinamool Congress-Congress government of Banerjee had announced a three-month freeze on DA payment, citing financial constraints.