President, PM, MPs to take 30% salary cut as India fights coronavirus

MPs' salaries will be cut for this year and funds from the Members of Parliament Local Area Development Scheme (MPLAD) for 2020-21 and 2021-22 will be transferred to CFI

MPs will take a 30 per cent salary cut for a year and forego for two years funds they get to spend on their constituencies to help India fight the coronavirus pandemic, the union cabinet decided on Monday after a virtual meeting.

“Charity begins at home—this is a landmark decision,” Union Minister Prakash Javadekar told journalists after the Cabinet meeting.

MPs' salaries, including the Prime Minister's, will be cut for this year and funds from the Members of Parliament Local Area Development Scheme (MPLAD) for 2020-21 and 2021-22 will be transferred to the Consolidated Fund of India. The government will introduce an ordinance to cut MPs' salaries from April 1.

The President, Vice President, state governors have voluntarily decided to take pay cuts as a social responsibility. The money will go to Consolidated Fund of India, said Javadekar. India is under a three-week lockdown due to the spread of the coronavirus, which has derailed large sectors of the economy and thrown thousands of immigrant workers out of jobs.

India’s dominant services sector, the lifeblood for economic growth and jobs, contracted in March as new business and export demand fell sharply as the coronavirus pandemic wreaked havoc globally, a private survey showed on Monday.

Asked when the lockdown will be lifted, Javedkar said, "We are monitoring the world situation every minute. A decision will be taken in national interest. A decision in this regard will be declared at the right time....There are Empowered Group of officials who are assessing the situation".

"The Parliament of the world's largest democracy stands together in these challenging times. I thank all the parties and MPs for their support," said Home Minister Amit Shah on Twitter.