As the economic impact due to the outbreak of COVID-19 increases, the central government has decided to cut the salaries of the Member of Parliament (MPs). The cabinet promulgated an ordinance in this regard to reduce the salaries, allowances, and pensions of MPs of both the houses by 30 percent for one year. The decision was informed by Union Information and Broadcasting Minister, Prakash Javadekar in a press briefing.
Further, the Union minister also announced that The President, Vice President, Governors of States have voluntarily taken the cut in their remuneration as a part of their social responsibility. Moreover, the cabinet has taken a decision to temporarily suspend the MPLAD (Members of Parliament Local Area Development Scheme) Fund for two years. As per the ordinance, the MPs will be ceased to get MPLAD funds for the fiscal year 2020-21 & 2021-22. All the money saved out of the cut in the salaries and suspension of the MPLAD fund will go to the Consolidated Fund of India.
Amount to go into Consolidated Fund of India
In a briefing through video-conferencing, Javdekar said, "Cabinet has approved 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. He further added, "President, Vice President, Governors voluntarily decided to take pay cut. The money will go to the Consolidated Fund of India." The funds will be utilized for health services and in the fight against the impact of COVID-19 pandemic in the country.
The government has already announced a relief package of Rs. 1.7 lakh crore under Pradhan Mantri Garib Kalyan (PMGK) but the corporate sector is yet to receive financial support. As per the latest numbers issued by the health ministry the COVID-19 related cases have jumped than 4000 with deaths over 100 in India.