Prez, PM, MPs pay cut, no MPLAD too

Faced with the twin challenges of an economy that is heading towards a downward spiral and the rapidly escalating Covid19 pandemic, the Union Cabinet on Monday cleared an ordinance effecting a 30 per cent monthly salary cut on all Members of Parliament for one year.

It also decided to abolish the Members of Parliament Local Area Development Scheme (MPLADS) fund for two years: 2020-21 and 2021-22.

The President, vice-president and all governors also decided to voluntarily accept a 30 per cent cut in their salaries. The decision was conveyed to the Centre, official sources said. The money saved through these salary cuts and the abolition of the MPLADS funds would be deposited in the Consolidated Fund of India, which the Centre wants to use to prepare an action plan to combat the challenges posed by the pandemic and boost the domestic economy.

Later, while interacting with his ministers, Mr Modi asked them to prepare a business continuity plan and to be ready to “combat the economic impact of the coronavirus pandemic on war footing”.

Sources said the Cabinet, whose meeting was held via video-conferencing for the first time after the lockdown was announced (though the earlier Cabinet meeting on March 25, held just a day after the PM had announced the lockdown, was held with the PM and Cabinet colleagues sitting at arm’s length from each other but in the same room), decided to promulgate an ordinance for a 30 per cent cut in salaries of all MPs for one year. The allowances of MPs will also fall under the deduction, sources said.