The financial assistance to India during this current Covid-19 scenario is coming greatly from its elite. Adding to that, taking social responsibility in their hands, the President, Vice President, All MPs including the Prime Minister and State Governors have come forward to take a pay cut for 1 year, so that their contribution could further help in aiding the country in this difficult times.
The Union Cabinet has approved an ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954, to reduce the allowances and pension by 30% starting April 1, 2020.
“The President, Vice President, Governors of States have voluntarily decided to take a pay ct as a social responsibility. The money will go to Consolidation Fund of India”, said Union Minister for Information and Broadcasting Prakash Javadekar on Monday (April 6, 2020)
The Consolidation Fund of India is the account that stores all revenues that are received by the Government as direct and indirect taxes. No money can be withdrawn from this fund without the approval of the Parliament. All government expenses are made through this fund excluding exceptional items which are met from Contingency Fund or Public Account.
Each MP has Rs.10 Crore in his Member of Parliament’s Local Area Development Scheme (MPLAD) Fund. It was announced that the Cabinet has also approved the request to temporarily suspend this MPLADS Fund for 2 years. Javadekar said “the consolidated amount of MPLADS Funds for two years – Rs.7900 crores will go to the Consolidated Fund of India”