Union Cabinet has approved an Ordinance amending the Salary, Allowances and Pension of Members of Parliament Act, 1954 for reducing salary by 30% for oneyear.
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.
