Coronavirus Pandemic is expected to have a huge impact on the finances of all the countries. India is already struggling due to the Lockdown and experts say that the impact is likely to be felt throughout 2020. Modi Government had started austerity measures to battle this.
Accordingly, the Union Cabinet approved Ordinance amending the Salary, Allowances, and Pension of Members of Parliament Act, 1954 reducing allowances and pension by 30 percent with effect from 1st April 2020 for a year. Also, the MPLAD Funds for the year 2020-21 & 2021-22 has been suspended.
This will amount to 7,300 Crore. The Government also informed that President, Vice President, Prime Minister, MPs and Governors of all states have volunteered to take a 30% salary cut for the next two years. These funds will be used to battle Coronavirus Pandemic.Follow @THEPANIPURI