New Delhi: Prime Minister Narendra Modi and all Union Ministers along with over 750 Members of Parliament (MPs) will take a 30 per cent salary cut for one year and the amount will be used to fight the COVID-19 pandemic in the country, Prakash Javadekar announced Monday.
The President, the Vice-President, Governors of states have also voluntarily decided to take a pay cut as a social responsibility, the Union Minister for Broadcasting added.
The Union Cabinet gave its nod Monday to an ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954 reducing allowances and pension by 30 per cent from April 1 2020 for a year, Javadekar told reporters. “Charity begins at home,” he said.
The salary structure for the PM and the Union Ministers is different from that of an MP, who draws a salary of Rs one lakh per month and a constituency allowance of Rs 70,000 per month, besides other allowances. Later, a government spokesperson clarified that only the salary and not the pension and allowances of the MPs will be cut. The money will go to the Consolidated Fund of India (CFI), he said.
All the revenue received by the government by way of taxes like income tax, central excise, customs and other receipts flowing to the government are credited into the CFI. All government expenditure is incurred from this fund and no amount can be withdrawn from the CFI without authorisation from Parliament.
The Cabinet also approved temporary suspension of the MPLAD (Member of Parliament local Area Development) fund scheme during financial years 2020-21 and 2021-22, and the amount will be used for ‘managing health and adverse impact of outbreak of COVID-19’ in the country, Javadekar said.
While there are 543 MPs in Lok Sabha, the Rajya Sabha has 245 members – 788 in all. Each MP gets Rs 5 crore per annum as MPLAD. It means, the government will get nearly Rs 7880 crore from the fund.
Union Home Minister Amit Shah meanwhile complimented Prime Minister Narendra Modi for the Union Cabinet’s approval for reduction of allowances and pension of all MPs by 30 per cent, and said the Parliament of the world’s largest democracy stands together in these challenging times.
“I congratulate PM @narendramodi ji, as cabinet approves the Ordinance for reducing allowances and pension of all MPs by 30% for a year,” Amit Shah tweeted.
“The Parliament of the world’s largest democracy stands together in these challenging times. I thank all the parties and MPs for their support. I also thank the President of India, Vice-President and Governors who have decided to contribute voluntary to this noble cause,” Shah added.
PTI
