As a result of the lock down due to COVID-19 outspread many industries have witnessed huge losses. This has left even the government to face losses with no taxes getting paid. The Central cabinet which has called for a meeting under the leadership of Prime Minister Narendra Modi discussed this.
To fight this, the cabinet has decided to reduce the salaries of MPs by 30% for one year. In addition to that, the cabinet has also decided to suspend funding the MPLAD((Members of Parliament Local Area Development Scheme) for the financial year of 2020-21 & 2021-22.
The fund amount for these two years which will be Rs 7900 crores will be transferred to the Consolidated Fund to India. The President, Vice President, and the Governors have also agreed to get a cut in their salaries voluntarily to be a part of this.