Coronavirus: Cabinet reduces salaries of President, Prime Minister, MPs by 30% for 1 year; MPLAD funds suspended for 2 years
Union Cabinet today approved an Ordinance amending the Salary, Allowances and Pension of Members of Parliament Act, 1954, for reducing salary by 30 per cent for one year in the wake of the coronavirus, COVID-19, epidemic. It will come into effect from April 11, 2020.
Union Cabinet approves Ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954 reducing allowances and pension by 30% w.e.f. 1st April, 2020 for a year. pic.twitter.com/afToRH8bfy
— ANI (@ANI) April 6, 2020
Speaking to media about Cabinet decisions, Information and Broadcasting Minister Prakash Javadekar said, the salary of Union Ministers and members of Parliament will be cut by 30 per cent for one year.
He also informed that Cabinet has decided to suspend MPLAD fund for two years from 2020-2021 to 2021-2022. He said an amount to the tune of Rs 7900 crore will be accumulated and deposited in the Consolidated Fund of India to fight COVID-19
Cabinet approves temporary suspension of MPLAD Fund of MPs during 2020-21 & 2021-22 for managing health& adverse impact of outbreak of #COVID19 in India. The consolidated amount of MPLAD Funds for 2 years - Rs 7900 crores - will go to Consolidated Fund of India: Prakash Javadekar pic.twitter.com/Suy20pFLQi
— ANI (@ANI) April 6, 2020
Mr Javadekar also informed that President, Vice President, Governors of States have also voluntarily decided to take a pay cut of 30 per cent as a social responsibility for one year. The money will go to the Consolidated Fund of India.
The Cabinet decision to go for a salary cut of elected representatives at the Centre came hours after PM Modi told BJP workers to prepare for a long haul. The country and its people can't afford to get tired or rest in this long war, he said.
Earlier on Wednesday, the Kerala government decided to cut a month's salary of all its staffs to raise funds for the state disaster relief fund. Karnataka Chief Minister B S Yediyurappa has given up a year's salary to help the state fight the COVID-19 crisis. Besides, Telangana, Andhra Pradesh, Odisha and Rajasthan also announced a cut in salaries of its government employees depending on their ranks.
Besides, Maharashtra, the state that is bearing the brunt of the coronavirus crisis with nearly 800 cases, has decided to pay out the salaries in instalments.