Economy fallout: Cabinet cuts Parliamentarians salary by 30 pc, suspends MPLAD funds

New Delhi: To reduce the government expenditure and contribute at the time of the economic crisis arising from the coronavirus outbreak, the Union Cabinet on Monday approved an ordinance to reduce the allowances and pensions of Parliamentarians by 30 per cent and suspended MPLAD funds for two years.
Briefing media, Information and Broadcasting Minister Prakash Javadekar said Members of Parliament Act, 1954 has been amended to reduce the allowances and perks. The reduction will be applicable for a year.
“With this, there will be a 30 per cent cut in the salaries of the Prime Minister, Ministers, MPs for the whole year of 2021,” he added.
The money saved from the cuts will go to the Consolidated Fund of India, Mr Javadekar said.
President Ram Nath Kovind, Vice-President Venkaiah Naidu and many state Governors and Lieutenant-Governors have voluntarily decided to take a pay cut as a part of social responsibility.
In another important decision, the Cabinet approved temporary suspension of MPLAD (Members of Parliament Local Area Development Scheme) Fund for two years.
The consolidated amount of MPLAD Funds for 2 years – Rs 7,900 crore – will also go to Consolidated Fund of India, Mr Javadekar said.
“MPs’ funds of Rs 10 crore each will be pushed towards nation-building,” he said.
After the approval of the Ordinance, Lok Sabha Speaker Om Birla wrote to the Lok Sabha Secretary General to cut 30 per cent of his salary every month and deposit it to the Consolidated Fund of India.
Union Home Minister Amit Shah hailed the Cabinet decision and said that Parliament of the world’s largest democracy stands together in these times. “I thanks all parties and MPs for their support”, he tweeted.
He also thanked the President, Vice-President and Governor who have decided to contribute voluntary.