New Delhi:Prime Minister Narendra Modi and all Union ministers along with over 750 Members of Parliament will take a 30 per cent salary cut for a year. The amount will be used to fight the Covid-19 pandemic, Union minister Prakash Javadekar said on Monday. Also, the President, Vice-President and Governors of states have voluntarily decided to take a pay cut as social responsibility, the minister added.
The Cabinet on Monday gave its nod 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, the minister told the media.
Later, a government spokesperson clarified that only the salary and not the pension and allowances of the MPs would be cut. The money would go to the Consolidated Fund of India (CFI), he added.
All revenue received by the government by way of taxes like income tax, central excise, customs and other receipts flowing to the government are credited to the CFI. All government expenditure is incurred from this fund and no amount can be withdrawn from the CFI without the Parliament authorisation.
The Cabinet also approved temporary suspension of the MPLAD (Member of Parliament Local Area Development) funds during financial years 2020-21 and 2021-22, and the amount would be used for “managing health and adverse impact of the outbreak”, the minister said.
There are 788 MPs in all, 543 in the Lok Sabha and 245 in the Rajya Sabha. Each MP gets Rs 5 crore per annum as MPLAD fund. It means, the government will get nearly Rs 7,880 crore from the fund.