- The Union cabinet recently decided to suspend the Member of Parliament Local Area Development (MPLAD) fund for two years and effect a 30% pay cut for all members of Parliament (MPs), including the prime minister and central ministers.
- The President, vice-president, and the governors have also voluntarily decided to forgo 30% of their salary for a year.
- The cabinet’s decision comes in the wake of central government employees having already contributed a day’s income to augment the resources for the fight against the virus that has infected more than 4,000 people in India and killed more than 100.
- According to data collated by PRS Legislative Research, MPs get a monthly salary of ₹1,00,000.
- They are also entitled to a constituency allowance of ₹70,000 per month and office allowance of ₹60,000 per month.
- The Union finance ministry had in late March announced a ₹1.7 trillion economic relief package to deal with the coronavirus outbreak and its cascading impact on everyone.
How will it help?
- Channelize corpus to the consolidated fund of India: The non-operation of the MPLAD fund for two years will allow the government to channelize the earmarked corpus of ₹7,900 crore to the consolidated fund of India.
The above decision will showcase a right signal and gesture of accountability as the government is readying to announce a second round of financial stimulus to deal with the covid-19 pandemic.