New Delhi: The Union Cabinet on Monday approved the Ordinance amending the salary, allowances, and pension of Members of Parliament Act, 1954 reducing their salaries by 30% for a year.
The ordinance, which is an amendment to Members of Parliament Act, 1954, will reduce the salaries of the members by 30% and will come into immediate effect for a year from April 1, 2020.
Union minister Prakash Javadekar said that the money will go to the Consolidated Fund of India which is a term used for the total revenue collected by the government through taxes and expenses that are incurred in the form of loans and borrowings. “Apart from the ordinance on MP salary, President Ram Nath Kovind, Vice-President Venkaiah Naidu and many state governors and lieutenant-governors have also voluntarily decided to take a pay cut as a social responsibility,” added the Union minister.
The minister also stated that the MPLADs (Members of Parliament Local Area Development Scheme) fund has been discontinued till 2022. The funds of Rs 10 crore for each MP will be pushed towards nation-building, he added.