NEW DELHI: The Union Cabinet on Monday approved an ordinance to cut salaries of the Prime Minister, all ministers and sitting MPs by 30% for one year in the wake of the Covid-19 crisis and also decided to suspend the MP Local Area Development Scheme (MPLADS) for two years. The twin moves will release Rs 7,900 crore to combat the disease.
Information and broadcasting minister Prakash Javadekar told the media that President Ram Nath Kovind, Vice-President Venkaiah Naidu and governors of states have also voluntarily offered to take the 30% pay cut as a social responsibility. The move, intended as an austerity measure, reflects the thinking in government that the political class should signal that it is not standing apart from the economic hardship caused to the common people.
The wage cuts will come into effect from April 1 for a year and the suspension of MPLADS fund will