Categories: Bank News

Cabinet promulgates ordinance to reduce the salaries and pensions of Members of Parliament (MPs)

Due to the outbreak of pandemic COVID 19 virus, the Union cabinet promulgated an ordinance to reduce the salaries, allowances, and pensions of Members of Parliament (MPs) by 30 percent for one year. According to news, Union Minister Prakash Javdekar communicated the cabinet decision in a press release.

According to Mr.Javdekar’s announcement, the Cabinet also approved the temporary suspension of the MPLAD (Members of Parliament Local Area Development Scheme) Fund during 2020-21 & 2021-22. The consolidated amount of MPLAD Funds for 2 years – Rs 7900 crores – will go to Consolidated Fund of India.

It is understood by the minister’s announcement, the President, Vice President, Governors of States have voluntarily decided to take a pay cut as a social responsibility. The money will go to Consolidated Fund of India.

People familiar with the matter said, PM Narendra Modi, asked union ministers to prepare a plan for their respective ministries to contain the economic impact of COVID-19 on war footing while asserting that this crisis is an opportunity to boost the ‘Make-in-India’ initiative and reduce dependence on other countries.

Surendra Naik

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Surendra Naik

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