To help collect funds to fight coronavirus, the government on April 6 decided to cut 30% salaries, allowances and pensions of the Member of Parliaments (MPs). Salary of PM, President, Vice President and Governors will also be cut for the period of 1 year.
However, if you are thinking that if a mere 30% cut in salaries will be able to provide enough (because it doesn’t sound like much), then here is a calculation that will surprise you.
Money that will be saved via salary cut.
If you do the maths, you will find that the total money that the government will save via salary cuts is not much. A member of parliament earns Rs. 1,00,000 per month. Moreover, they are eligible for an additional office expense of Rs. 60,000 per month. Also, there is an extra Rs. 70,000 per month they get as constituency allowance.
So in total, the money saved will be Rs. 2,30,000 – adding Rs. 2000 per day as a daily allowance for the members of parliament.
Now talking about PM and President, the former earn a total salary of Rs 1,43,000 (basic salary + constituency allowance + sumptuary allowance + office expense allowance). The President earns Rs 5,00,000 per month and a Governor, Rs 3.5 lakh per month.
So once the maths is done. The total money that will be saved will be Rs 52,35,80,400. 52 cores may not sound much but there is more to it.
The Union Cabinet has also directed the suspension of the MP Local Area Development (MPLAD) fund for a period of 2 years. MPLAD is a sum of Rs. 5 crore that MP gets per year to carry out development work in their constituency.
So the suspension of the same will save a whopping Rs 7,900 crores. Now in total, the government will have 7,952 crores in its treasury to fight coronavirus.