In an unprecedented move, the Central Government on Monday decided to slash salaries of Members of Parliament and Union Cabinet Ministers by 30% for one year amid the novel Coronavirus hit to the country. Union Minister Prakash Javadekar informed that the Union Cabinet has approved an Ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954 reducing allowances and pension by 30% w.e.f. April 1 for a year.
The money saved by the public exchequer will be used in the government's fight against the COVID-19 oubreak and the subsequent fallout on the economy.
"The President, Vice President, Governors of States have voluntarily decided to take a pay cut as a social responsibility. The money will go to the Consolidated Fund of India," Prakash Javadekar said.
Javadekar said that an amendment in this regard will be tabled in Parliament once the House is back in session, but the Ordinance, which temporarily allows the law to take effect for six months, kicks into effect the change. The Prime Minister, being a member of the Cabinet and Parliament, will also have a pay cut.
In another decision, the Modi Cabinet approved temporary suspension of MPLAD Fund of MPs during 2020-21 and 2021-22 for managing health and adverse impact of outbreak of COVID-19 in India. The consolidated amount of MPLAD Funds for two years — Rs 7900 crores — will go to Consolidated Fund of India.