NEW DELHI: Finance Minister Arun Jaitley has accepted the demand of members of Parliament and announced that their salaries will be revised automatically after every five years, indexed to inflation.
"There has been a considerable public debate with regard to emoluments paid to Members of Parliament. The present practice allows the recipients to fix their own emoluments which invites criticism. I am, therefore, proposing necessary changes to refix the salary, constituency allowance, other expenses payable to Members of Parliament with effect from April 1, 2018," Jaitley said while announcing the Union Budget for the year 2018-19.
He added that these revisions will come into effect automatically. "The law will also provide for automatic revision of emoluments every five years indexed to inflation," he added.
As per the present system, a Parliamentary committee having members from both Houses of Parliament makes its recommendations on the salaries and allowances of MPs. Thereafter, the government takes appropriate decision and brings an amendment Bill. Such amendment proposals are usually approved with consensus in Parliament.
Several MPs in Lok Sabha have been raising a demand for a hike in salaries.
Along with MPs, the emoluments for President, Vice President and Governor have also been increased to Rs 5 lakh, Rs 4 lakh and Rs 3.5 lakh respectively.