Legislators’ salary cut by 30%

Legislators’ salary cut by 30%

Part of: GS Prelims and GS-II – Polity

In News:

• Union Cabinet has approved an Ordinance amending the Salary, Allowances and Pension of Members of Parliament Act, 1954 for reducing salary by 30% for one year. 
• It will come into effect from 1st April, 2020. 

Key takeaways:

• President, Vice President, Governors of States have also voluntarily decided to take a pay cut of 30% as a social responsibility for one year. 
• The money will go to Consolidated Fund of India. 

Important value additions:

Consolidated Fund of India

• It includes revenues, which are received by the government through taxes and expenses incurred in the form of borrowings and loans. 
• All government expenditures are met by consolidated funds except a few. 
• It was created under Article 266 of the Constitution.  
• Similar to the Centre, every state has its own Consolidated Fund as well.