Union Cabinet Approves Hike In Allowances Of Members of Parliament

| February 28 , 2018 , 19:30 IST

The Union Cabinet on Wednesday approved a proposal to increase allowances of Members of Parliament. The cabinet nod increases the constituency allowance, furniture allowance and communication expenses of MPs.

As per a release from the Government of India, the constituency allowance will be increased from Rs 45,000 to Rs 70,000 a month w.e.f. 1.4.2018 which shall be increased after every five years commencing from 01.04.2023 on the basis of Cost Inflation Index.

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The one-time furniture allowance for the MP's will now be increased to Rs 1 lakh.

Office Expense Allowance for Members of Parliament has been increased from Rs. 45,000 to Rs. 60,000 per month.

Additional financial implication on account of the decision taken by the Cabinet would be around Rs 39,22,72,800/- (Rupees Thirty-nine crores, twenty-two lakhs, seventy-two thousand & eight hundred) approximately of recurring expenditure and Rupees 6,64,05,400/- (Rupees Six crores, sixty-four lakhs five thousand & four hundred) approximately of non-recurring expenditure.

Finance minister Arun Jaitley had announced in his budget speech that a permanent mechanism would be established to review the salaries of parliamentarians every five years and that it would be linked to inflation.