COVID-19 Crisis: President, PM, Ministers, To Take 30% Pay Cut, MPLADS Funds Suspended For Two Years

Alerting people to be prepared for a "long fight" against the COVID-19 pandemic, the Union Cabinet decided to slash the salaries of union ministers and members of parliament including the Prime Minister by 30 per cent for the upcoming year.

The move comes amid the economic impact of lockdown and the expected slowdown in the economy due to the massive COVID-19 outbreak.

Union Minister Prakash Javadekar announced the decision in a video conference and mentioned that President Ram Nath Kovind, Vice President Venkaiah Naidu and all state Governors have offered their consent to take a 30 per cent salary cut. The salary cut comes into effect from April.

The money will be directed to the country's consolidated fund, the Javdekar said after the cabinet gave a nod to an order amending the "Salary, Allowances and Pension of Members of Parliament Act, 1954".

The salary of all parliamentarians, including ministers, is more or less around ₹1 lakh per month, but, there is a variation in allowances between ministers and common MPs. However, the allowances have not seen any cuts.

During the briefing, Javadekar clarified that only the salary and not the pension and allowances of the MPs will be slashed. With the suggested salary cut, the government will save a whopping ₹29 crores a year.

MPLADS Funds Suspended

The Union Cabinet also suspended the MP Local Area Development Scheme (MPLADS) for two years and noted that ₹7,900 crores from the MPLADS scheme will be directed to Consolidated Fund of India.

While there are 543 MPs in Lok Sabha, the Rajya Sabha constitutes 245 members. Each MP receives ₹5 crores per annum as MPLAD and for two years it would be approximately ₹7880 crores.

The meeting was held soon after the Prime Minister addressed the BJP workers to make plans for slowly ending the current lockdown and to mitigate the economic impact of the virus.

"It is going to be a long haul, we do not have to tire, our resolve and mission are to emerge victorious in the fight against this pandemic," PM Modi cautioned on the Bhartiya Janata Party's 40th Foundation Day on April 6.

Backlash From Opposition

The idea of a consolidated fund received a lot of backlash from the opposition.

"Centre's decision to cut salaries &pensions of MPs is welcome. It's a good way for us to show solidarity w/people suffering across the country. But the Ordinance ending MPLADS funds for 2 years &pooling them into a Consolidated Fund run by the CentralGovt is problematic," tweeted Shahi Tharoor.

"MPLADS funds are not personal funds of MPs. This is for aiding people during natural calamities of or to fight diseases like COVID-19," Congress' Randeep Surjewala, said. He also advised the centre to slash some of the government's expenses instead.

The CPM also showed resistance on the government's move and lashed out at the centre for "wasting public money on statues and extravagant personal publicity and neglected healthcare".

Also Read: Coronavirus Outbreak: Punjab Cabinet Ministers To Donate A Month's Salary To CM's Relief Fund