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Ordinance to Cut expenditure
April 7 , 2020
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- The Union Cabinet approved to cut the salary of Prime Minister and other MPs by 30%.
- Apart from them, the salaries of president, governor and vice president are also to be cut.
- An ordinance in this regard was approved by the Union Cabinet to amend the “Salaries, Allowances and Pension of Members of Parliament Act, 1954”.
- According to the Act, as amended in April 2018, MPs are entitled to a monthly salary of Rs.1 lakh, apart from various allowances.
- The amount cut from the members are to go to consolidated fund of India.
- Only the MPs’ salaries would be cut, not allowances or the pensions of ex-MPs.
- The Cabinet has also approved that the MPLADS are to be suspended for 2 years that is between 2020-21 and 2021-22.
- The MPLADS is Members of Parliament Local Area Development Scheme (MPLADS).
- It was introduced in 1993.
- The Ministry of Statistics and Programme Implementation (MOSPI) has been looking into its working.
- It is fully funded by the Government of India.
- Each MP is allocated Rs. 5 crore per year since 2011-12.
- Funds are non-lapsable in nature i.e. in case of non-release of fund in a particular year it is carried forward to the next year.
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