Cabinet reduces salaries of MPs by 30% for a year, no MPLAD funds for 2 years

In view of the emerging situation arising due to the rapid spread of coronavirus, the cabinet promulgated an ordinance to reduce the salaries, allowances and pensions of Members of Parliament (
MPs) by 30 per cent for one year. The decision was communicated by Prakash Javadekar in a presser.

The Cabinet also approved the temporary suspension of the MPLAD (Members of Parliament Local Area Development Scheme) Fund during 2020-21 & 2021-22. The consolidated amount of MPLAD Funds for 2 years – Rs 7900 crores – will go to Consolidated Fund of India, declared Prakash Javadekar in the press briefing.

The minister also announced that The President, Vice President, Governors of States have voluntarily decided to take a pay cut as a social responsibility. The money will go to Consolidated Fund of India.

PM Narendra Modi asked union ministers to prepare a plan for their respective ministries to contain the economic impact of COVID-19 on war footing, while asserting that this crisis is an opportunity to boost the ‘Make-in-India’ initiative and reduce dependence on other countries.

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