Cabinet: Ordinance to cut salary of PM and MPs by 30% approved

On April 6, 2020, 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

Highlights

The amount cut from the members are to go to consolidated fund of India. The Cabinet has also approved that the MPLADS are to be suspended for 2 years that is between 2020-21 and 2021-22. With this move, GoI has saved 7,900 crores.

Consolidated Fund of India

The Consolidated Funds of India holds the revenue received by the GoI. The fund was constituted under Article 266. The funds include direct taxes, indirect taxes, receipts from loans, money borrowed. The money from the funds cannot be withdrawn without the permission of the Parliament.

The salary of president, prime minister, Chief Justice of India, CAG, judges of high court, supreme court draw their salary from the consolidated funds of India.

MPLADS

The MPLADS is Members of Parliament Local Area Development Scheme (MPLADS). It was introduced in 1993. Under this scheme, the members of the parliament shall recommend works upto Rs 25 lakhs per year. And in case of natural calamity, they shall sanction funds upto Rs 1 crore.

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