Following Centre's footsteps, the Maharashtra Cabinet too has approved a proposal for 30% salary cut for all state legislators for a year beginning from April. Earlier, the Central government decided to slash salaries of Members of Parliament and Union Cabinet Ministers by 30% for one year amid the COVID-19 pandemic in India.
The lockdown due to the pandemic has severely impacted several sections of the society with several individuals losing their daily source of income. Meanwhile, the Central Government has introduced various relief measures for the underprivileged and is also mulling another stimulus package worth over Rs 1 lakh crore similar to the Rs 1.75 lakh crore stimulus announced last month.
The Maharashtra Cabinet on Thursday also approved the constitution of 2 committees for assessing & formulating a revival plan for the state's economy post the lockdown imposed. One committee will have experts, including former bureaucrats & officials from the Maharashtra Finance Ministry. While the other committee will be of Ministers - Ajit Pawar (Deputy CM), Jayant Patil, Balasaheb Thorat, Chhagan Bhujbal and Anil Parab.
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. 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.
Moreover, the Modi Cabinet approved temporary suspension of MPLAD Fund of MPs during 2020-21 and 2021-22 for managing health and the adverse impact of the outbreak of COVID-19 in India. The consolidated amount of MPLAD Funds for two years — Rs 7900 crores — will go to the Consolidated Fund of India (CFI). The CFI is the account of the revenue the Government of India receives — via income tax, Customs, central excise and the non-tax revenue — and the expenses it makes, excluding exceptional items. Essentially, a sum of Rs 500 crore from the Consolidated Fund of India is transferred to the Contingency Fund of India for dealing with any emergency situation.