<h1>Cabinet Approves City Reclassification for HRA and Transport Allowance; Changes Effective April 2014, Costs Rs. 128 Crore.</h1> The Union Cabinet, led by the Prime Minister, approved the reclassification of certain cities based on Census-2011 for adjusting House Rent Allowance (HRA) and Transport Allowance for Central Government employees. Two cities are upgraded from 'Y' to 'X' class, and 21 cities from 'Z' to 'Y' class for HRA purposes. Additionally, six cities are upgraded for higher Transport Allowance rates. The changes, effective from April 1, 2014, will cost approximately Rs. 128 crore for 2014-15. This reclassification aligns with the population criteria set by the 6th Central Pay Commission and updates the previous classifications based on the 2001 Census.