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Cabinet defers decision on hiking salary of MPs

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BS Reporter New Delhi

The Union Cabinet today deferred a decision on raising the salaries and pensions of members of Parliament (MPs), after a section of ministers voiced concerns about the timing of the proposal.

According to sources in the Cabinet, Prime Minister Manmohan Singh will take a final call on the issue. Sources in Parliament said it was unlikely the bill would be passed during the current session of Parliament.

At the Cabinet meeting, several ministers said raising MPs’ emoluments in the wake of the allegations of corruption in the Commonwealth Games and the drought situation in some parts of the country, would send a wrong signal. The draft bill proposes to raise the salaries of MPs from Rs 16,000 per month to Rs 50,000 a month. Besides the base salary, the proposal also includes a 100 per cent raise in the daily allowances of MPs from Rs 1,000 to Rs 2,000.

 

Some ministers argued that when the aam aadmi was suffering due to the current spurt in the prices of essential commodities, any move to hike MPs’ salaries was unwarranted and would be impossible to justify. Defence Minister A K Antony is believed to have said that the government should keep in mind “public perception” before considering any raise in MPs’ salaries. Overseas Indian Affairs Minister Vayalar Ravi and Information & Broadcasting Minister Ambika Soni, too, demanded there be only a “proportionate hike”. Home Minister P Chidambaram also joined and said there could be a moderate raise.

A Parliamentary Standing Committee had recommended a raise in MPs’ salaries, taking into account the consumer price index and the wage index for skilled urban labour. The committee, led by Congress MP from Chhattisgarh, Charandas Mahant, had recommended the monthly salary be raised to Rs 80,000. The finance ministry, however, opted for Rs 50,000.

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First Published: Aug 17 2010 | 1:52 AM IST

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