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Updated on JUL 26, 2021





Updated: JUL 26 / 2021

Weekly News Digest

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President approves 30% cuts in salaries of MPs for one year

President of India Ram Nath Kovind on Tuesday approved the ordinance amending the Salary, Allowances & Pension of MP Act, 1954 reducing allowances and pension by 30% w.e.f. 1st April, 2020 for a year. The Union Cabinet had on Monday approved an Ordinance cutting the salary, allowances and pension of Members of Parliament by 30% for a year and deposit the money to fight coronavirus outbreak. Now, each MP will also forfeit Rs 27,000 per month from out of Constituency Allowance and Office Allowance.

The Joint Committee of Parliament in consultation with the government had recommended 30 percent cut in Constituency Allowance of Rs 70,000 pm which comes to Rs 21,000. Now it will be 49,000 per month. Out of Rs 60,000 of Office Allowance per month, each MP will now get Rs 14,000 towards stationary against Rs 20,000 earlier. There's no cut in the amount of Rs 40,000 pm meant for engaging PAs. Rajya Sabha chairman M Venkaiah Naidu and Lok Sabha Speaker Om Birla accepted the recommendations of Joint Committee and the cuts become effective from April 1.

The Cabinet also decided to suspend the Members of Parliament Local Area Development (MPLAD) Fund for two years for "managing health and adverse impact of the outbreak of COVID-19 in the country." All money will go to the Consolidated Fund of India. This comes as the government intensifies the efforts to deal with the coronavirus and braces for the negative impact of the pandemic on the Indian economy and healthcare system.

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