30% pay cut for PM, President and Ministers over a year amidst COVID-19 crisis

The Union Cabinet has approved an ordinance slashing the pension and allowances of members of the Parliament by 30 per cent for a year, Union minister Prakash Javadekar said on Monday.

The ordinance - an amendment to Members of Parliament Act, 1954, will reduce the allowances and pension by 30 per cent with effect from April 1, 2020. The reduction will be applicable for a year.

"Apart from the ordinance on MP salary, President Ram Nath



Kovind, Vice-President Venkaiah Naidu and many state governors and lieutenant-governors have also voluntarily decided to take a pay cut as a social responsibility," the Union minister said.

"The money will go to the Consolidated Fund of India," Prakash Javadekar said.

The Consolidated Fund of India is the term used for the total revenue collected by the government through taxes and expenses incurred in the form of borrowings and loans.