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Legislations, The Law

The Salaries and Allowances of Ministers (Amendment) Ordinance, 2020

The Constitution allows the MPs to determine their salary and allowances by passing a law. Sometimes, this may lead to a conflict of interest. This Ordinance amends the Salary, Allowances, and Pension of Members of Parliament Act, 1954.  

By: Pooja Mujumdar, ILS Law College, Pune.

INTRODUCTION

The salaries and allowances of Ministers Act, 1952 is an act that governs the salaries and allowances of the ministers of the government of India. A new ordinance i.e. The Salaries and Allowances of Ministers (Amendment) Ordinance, 2020 was issued recently pertaining to the situation of COVID-19.

OBJECT OF THE ORDINANCE

As the whole world is grappling with the Covid-19 virus, India too is facing some health as well as economic challenges. Thus, it became necessary for the government to take certain actions to manage and control such a situation by a raise in the available resources. Thus, this ordinance was introduced so as to reduce the salaries and allowances of the ministers and use that fund to fight the pandemic.

ANALYSIS

  • The Constitution allows the MPs to determine their salary and allowances by passing a law. Sometimes, this may lead to a conflict of interest. 
  • This Ordinance amends the Salary, Allowances, and Pension of Members of Parliament Act, 1954.  

The Act lays out the salary and various allowances that an MP is entitled to during their term in Parliament and also provides for the pension to former MPs.

  • Now, the two ordinances- i. The Salary, Allowances, and Pension of Members of Parliament Act, 1954 and ii. The Salaries and Allowances of Ministers Act, 1952 were amended to reduce the salaries of the MPs by 30% for one year to contribute more money towards the relief and resource of Covid-19.
  • The government also amended the rules notified under the 1954 Act to reduce certain allowances of MPs for one year. These also include office allowances. 
  • These changes are effective from 1st April 2020 and are made for one year.

CONCLUSION

The said promulgated ordinance which is to reduce the salaries of the MPs by 30% is said to have an impact. Due to the pandemic situation, utilizing maximum resources towards healthcare and relief has become the need of the hour.

Total amounts of Rs. 54 crores will be saved by cutting off the salaries and allowances which is less than 0.01% of the special economic package (Rs. 20 lakh crore) announced by the centre to fight the COVID-19 pandemic.

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