New Delhi: In a bonanza for Members of Parliament, the Union Cabinet on Wednesday cleared the proposal to increase their expenses related to constituency, office and communication usage. The overall financial implication on the exchequer on account of this hike in the legislators’ allowances will amount to Rs 39 crore.
Increase in the constituency allowance for MPs from Rs 45,000 per month to Rs 70,000 per month w.e.f. April 1, 2018, which shall be increased after every five years commencing from April 1, 2023, on the basis of Cost Inflation Index provided.
The Cabinet also cleared the proposal to increase office expense allowance for MPs from Rs 45,000 per month (Rs 15,000 for expenses on stationary items and postage plus Rs 30,000 for a computer literate person engaged by MP for obtaining secretarial assistance) to Rs 60,000 per month (Rs 20,000 for expenses on stationary items and postage plus Rs 40,000 for a computer literate person engaged by Member of Parliament for obtaining secretarial assistance) w.e.f. April 1, 2018, which shall be increased after every five years commencing from April 1, 2023.
The Cabinet also proposed that the one-time furniture allowance be hiked to Rs 1 lakh from the present Rs 75,000.
Finance minister Arun Jaitley had announced in his Budget speech that a permanent mechanism would be set up to revise the salaries of MPs every five years, and it would be linked to inflation.
The remuneration of an MP includes a basic salary of Rs 50,000 per month and Rs 45,000 as constituency allowance, apart from other perks.
The Centre spends around Rs 2.7 lakh a month on an MP. As of today, excluding the Speaker, the Lok Sabha has 536 MPs, including two nominated from the Anglo-Indian community.
