Cabinet approves ordinance to slash 30% salaries of MPs, ministers for a year; MPLAD funds suspended for 2 years
The Cabinet has also decided to suspend the Members of Parliament Local Area Development (MPLAD) Fund for two years for "managing health and adverse impact of the outbreak of COVID-19 in the country.
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The Union Cabinet on Monday approved an Ordinance cutting the salary, allowances and pension of Members of Parliament by 30% for a year and deposit the money to fight coronavirus outbreak.
The pay cut will be effected from April 2020 for a year.
Besides pay cut in MP's remuneration, the Prime Minister and all ministers will forego 30% of salary for a year.
The Cabinet has also decided to suspend the Members of Parliament Local Area Development (MPLAD) Fund for two years for "managing health and adverse impact of the outbreak of COVID-19 in the country."
Addressing the media after the Cabinet meeting, Union minister Prakash Javadekar the President, the Vice President and Governors of States have voluntarily decided to take a pay cut as a social responsibility.
All money will go to the Consolidated Fund of India.
This comes as the government intensifies the efforts to deal with the coronavirus and braces for the negative impact of the pandemic on the Indian economy and healthcare system.
So far, 4067 coronavirus cases have been reported in India with 109 deaths.