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Published 17:53 IST, April 6th 2020

'India stands together' says Amit Shah as he welcomes the 30% salary cut For MPs

Amit Shah on Monday congratulated PM Modi after the cabinet approved the ordinance for reducing allowances and pensions of all MP's by 30%.

Reported by: Prachi Mankani
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Union Home Minister Amit Shah on Monday congratulated Prime Minister Narendra Modi after the cabinet approved the ordinance for reducing allowances and pensions of all MP's by 30%. The Central Government on Monday decided to slash salaries of Members of Parliament and Union Cabinet Ministers by 30% for one year amid the novel Coronavirus hit to the country. Union Minister Prakash Javadekar informed that the Union Cabinet has approved an Ordinance amending the salary.

Taking to Twitter, Amit Shah stated that India stands together in these tough times and further thanked all the parties and MP for their support.

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READ: Congress welcomes Centre's '30% salary cut for MPs'; but adds 'scrap Central Vista too'

Furthermore, Union Minister Ravi Shankar Prasad also hailed the 'great decision' by  PM Modi, stating that the pay cut can be utilised for India's to fight against Coronavirus.

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Centre cuts MPs' salary by 30%

Earlier in the day, the Central Government decided to slash salaries of Members of Parliament and Union Cabinet Ministers by 30% for one year amid the COVID-19 pandemic in India. Union Minister Prakash Javadekar informed that the Union Cabinet has approved an Ordinance amending the salary, allowances and pension of Members of Parliament Act, 1954 reducing allowances and pension by 30% w.e.f. April 1 for a year. Javadekar said that an amendment in this regard will be tabled in Parliament once the House is back in session, but the Ordinance, which temporarily allows the law to take effect for six months, kicks into effect the change.

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Moreover, the Modi Cabinet approved temporary suspension of MPLAD Fund of MPs during 2020-21 and 2021-22 for managing health and the adverse impact of the outbreak of COVID-19 in India. The consolidated amount of MPLAD Funds for two years — Rs 7900 crores — will go to the Consolidated Fund of India (CFI). The CFI is the account of the revenue the Government of India receives — via income tax, Customs, central excise and the non-tax revenue — and the expenses it makes, excluding exceptional items. Essentially, a sum of Rs 500 crore from the Consolidated Fund of India is transferred to the Contingency Fund of India for dealing with any emergency situation.

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17:53 IST, April 6th 2020