Fighting Covid-19: Rs 7,900 cr under MPLADS to be used to fight pandemic; PM, President, MPs to take 30% salary cut in FY21

By: |
Published: April 7, 2020 2:30:55 AM

The move suggests the government is scrambling scarce resources from every possible source to prepare for a long and hard battle against coronavirus.

The emoluments of members of parliament, including the Prime Minister, stand at around Rs 2.3 lakh per month, which includes a basic salary of Rs 1 lakh. (File image)The emoluments of members of parliament, including the Prime Minister, stand at around Rs 2.3 lakh per month, which includes a basic salary of Rs 1 lakh.
(File image)

Prime Minister Narendra Modi, Union ministers and members of Parliament (MPs) will take a 30% cut in their emoluments in FY21 in view of the Covid-19 outbreak, with the Cabinet approving an Ordinance on Monday to implement the decision.

The Cabinet has also cleared a proposal to suspend the Members of Parliament Local Area Development Scheme (MPLADS) in FY21 and FY22, so that the Rs 7,900 crore earmarked for it for these two years, typically for development work in constituencies, can be utilised to fight the pandemic. The move suggests the government is scrambling scarce resources from every possible source to prepare for a long and hard battle against coronavirus.

Briefing reporters, information and broadcasting minister Prakash Javadekar also said President Ram Nath Kovind, vice-president M. Venkaiah Naidu and governors of various states have also expressed willingness to forgo 30% of their salaries in FY21. The money will go to the Consolidated Fund of India.

The President draws a salary of Rs 5 lakh per month, while vice-president and governors get Rs 4 lakh and Rs 3.5 lakh, respectively, apart from sundry perks. The emoluments of members of parliament, including the Prime Minister, stand at around Rs 2.3 lakh per month, which includes a basic salary of Rs 1 lakh.

The MPLADS is usually meant for development work and the creation of durable community assets. Typically, MPs have a recommendatory role, while the actual execution of the projects is done by district authorities.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Mamata Banerjee seeks PM Modi’s intervention in railways sending Shramik Special trains to West Bengal
2Jhansi on alert against locusts, fire brigade ready to spray insecticide
3‘Governor should scold those trying to destabilise Uddhav Thackeray govt’: Shiv Sena’s veiled attack on BJP