A 300 percent salary hike for Members of parliament was cleared, and their perks were doubled. But, The MP's are dissatisfied as they sought Rs 80,001 salary per month as recommended by a parliamentary committee. Politics is all about money in India.The average worth of assets of an MP in the Lower House has increased from Rs 1.86 crore to Rs 5.33 crore in the last five years, reports Zee News.
Read the whole article here:
The Union Cabinet has cleared a 300 percent salary hike for Members of Parliament, from current Rs 16,000 to Rs 50,000. Not only this, the perks given to MPs have also been doubled. But the “minimal” hike has completely failed to appease our dear MPs, who sought Rs 80,001 salary per month as recommended by a parliamentary committee.
Money rules! It does, certainly. Politics has become a huge money-making business in India. According to the Association for Democratic Reforms (ADR), the number of crorepati MPs has increased from 156 in 2004 to 315 in 2009.
The non-governmental organisation further noted in its report that the average worth of assets of an MP in the Lower House has increased from Rs 1.86 crore to Rs 5.33 crore in the last five years. How does the bank balance of our politicians go up when the living conditions of the poor and the common man continue to go down?
Just compare and contrast: There are more poor people in eight Indian states (421 million in Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh, and West Bengal) than in the 26 poorest African countries combined (410 million). The statistics were revealed with the help of a new measure called the Multidimensional Poverty Index, which was developed and applied by the Oxford Poverty and Human Development Initiative with UNDP support.
In 2009, Vandana Shiva of NGO Navdanya had said that India has emerged as the world’s capital of hunger with 214 million hungry people.
More than 70% of India’s under-five children are anaemic.
The Tata Institute of Social Sciences noted last year that two out of three of India’s 1.1 billion people still live and work in rural areas and as many as 1,50,000 debt-hit farmers have killed themselves in the past decade.
According to UNICEF, 665 million Indians don’t have access to toilets, so they defecate in public.
Skyrocketing food prices and surging inflation have further dashed the hopes of India’s ‘aam junta’.
Our politicians are unhappy with the salary hike and our citizens are dissatisfied with MPs’ performance. “Netas get salary, then they make under-the-table money with the help of the position they hold, then they get official allowances. They are robbing our taxes everyday, and we can’t do anything,” said a neighbour of mine, who was angry with the sad state of affairs of this country.
I am not against a pay hike for MPs. But some standards should be set for raising the salaries. According to the Central Statistical Organisation (CSO), the per capita income, a measure of average income of a citizen, was recorded at Rs 37,490 per annum during 2008-09. The common man is not even entitled to free flights, first-class air-conditioned train travel, free accommodation and several other benefits as our politicians are.
It is interesting to note that the upcoming CWG in Delhi is in the news due to corruption, leaky stadiums, dodgy money transfers, inferior equipment. Have we ever wondered how our athletes are preparing for the games? Recently, Leander Paes, Mahesh Bhupathi, Somdev Devvarman and Rohan Bopanna had threatened to pull out of the Games because they were not paid for its preparations. The CWG was heard to be running out of funds. Despite this, politicians are less interested in sorting this issue, but to fill their own pockets.
Indian democracy has become the government of the RICH, by the POOR and for the MONEY.
Read the article on Miracle of Democracy.
Showing posts with label MP. Show all posts
Showing posts with label MP. Show all posts
Sunday, August 22, 2010
Three statistics that our MPs must consider
The pay hike of Members of Parliament are gathering anger.India's Economy has grown by 8.5 per cent in the last 5 years.The per capita income Indians stand at 2,795 Rs per month. The salary of MP's are being tripled. If Rs. 50,000 is an insult, as Lalu Prasad Yadav said, what would you call Rs. 2,795, an abomination? The trade union like activities of MPs create a huge divide between them and the people they represent, writes Gautam Chikermane in Hindustan Times.
Read the whole article:
"As the question of how much our Members of Parliament (MPs) are paid gathers anger, here is a rational look at this phenomenon that best defines the meeting point of politics and money. I’d like to present three statistics."
"One, over the past five years, India’s economy has raced ahead by a compounded average growth rate (CAGR) of 8.5 per cent, impressive by any account, particularly in the context of one of the world’s harshest recessions since the Great Depression that barely caused a slowdown in India."
"Two, in the same period, the per capita income of its citizens has grown by 6.8 per cent. It stands at R33,540 per annum, Rs 2,795 per month or Rs 93 (about $2) per day. That’s a global rank of 143, after adjusting for purchasing power parity (PPP). "
"In this context, here is the third statistic: the salaries of MPs are being tripled, which means a CAGR of 31.6 per cent over their 2006 salary. The MPs are livid, saying it’s not enough. The last time they got a raise, it was four-fold (in 2006), so how can they settle for a three-fold rise this time?"
"We do need to pay our representatives well. In a democracy, they are our sole link to changing aspirations. The question is, how well?"
"This salary (Rs 50,000) is an insult to Parliament," Rashtriya Janata Dal President Lalu Prasad said. I would humbly like to point out, sir, that this monthly salary is 1.5 times the annual income of an average Indian. If R50,000 is an insult, what would you call R2,795, an abomination?
"I wonder why our representatives can’t see what the rest of the nation can — their coarse rent-seeking through higher salaries is creating a deep divide between themselves and the people they purport to represent."
"Honourable Members: can you please keep this raise in abeyance till your constituents are better fed, better clothed, better housed? Linking your increments to the well-being of your constituents will bring you far greater long-term dividends."
Read the article on Miracle of Democracy.
Read the whole article:
"As the question of how much our Members of Parliament (MPs) are paid gathers anger, here is a rational look at this phenomenon that best defines the meeting point of politics and money. I’d like to present three statistics."
"One, over the past five years, India’s economy has raced ahead by a compounded average growth rate (CAGR) of 8.5 per cent, impressive by any account, particularly in the context of one of the world’s harshest recessions since the Great Depression that barely caused a slowdown in India."
"Two, in the same period, the per capita income of its citizens has grown by 6.8 per cent. It stands at R33,540 per annum, Rs 2,795 per month or Rs 93 (about $2) per day. That’s a global rank of 143, after adjusting for purchasing power parity (PPP). "
"In this context, here is the third statistic: the salaries of MPs are being tripled, which means a CAGR of 31.6 per cent over their 2006 salary. The MPs are livid, saying it’s not enough. The last time they got a raise, it was four-fold (in 2006), so how can they settle for a three-fold rise this time?"
"We do need to pay our representatives well. In a democracy, they are our sole link to changing aspirations. The question is, how well?"
"This salary (Rs 50,000) is an insult to Parliament," Rashtriya Janata Dal President Lalu Prasad said. I would humbly like to point out, sir, that this monthly salary is 1.5 times the annual income of an average Indian. If R50,000 is an insult, what would you call R2,795, an abomination?
"I wonder why our representatives can’t see what the rest of the nation can — their coarse rent-seeking through higher salaries is creating a deep divide between themselves and the people they purport to represent."
"Honourable Members: can you please keep this raise in abeyance till your constituents are better fed, better clothed, better housed? Linking your increments to the well-being of your constituents will bring you far greater long-term dividends."
Read the article on Miracle of Democracy.
Friday, August 20, 2010
Pay hike to cost the country Rs 60 lakh for each MP, per year
The MP's of India are dissatisfied by their pay hike. The Samajwadi Party, Rashtriya Janata Dal and the Janata Dal stalled proceedings in the Lok Sabha on August 20. MPs argue that their present salary is lower than that of a secretary level government employee, reports Times Now.
Read the whole article:
A 300% hike is not enough for our Members of Parliament; now they want it to be 500%. Dissatisfied by the quantum of hike in the salaries approved by the Cabinet, the Samajwadi Party, Rashtriya Janata Dal and the Janata Dal (United) stalled proceedings in the Lok Sabha on Friday (August 20). MPs led by Lalu Prasad and Mulayam Singh Yadav created an uproar and forced two adjournments before the final one for the day.
The MPs contended that the government had insulted Parliament by rejecting the recommendation of its own Committee to raise the basic salary from Rs 16,000 to Rs. 80,000 per month. MPs have argued that their current salaries are lower than a secretary level government employee.
However, a back-of-the-book calculation by TIMES NOW has estimated that effectively MPs annual salary per month is now Rs 5 lakh including free air tickets, Dearness Allowance, accommodation, rent telephone and electricity bills and constituency allowance. Like all employees have a 'Cost to Company', to maintain their lifestyle these MPs have a Cost to the Nation that goes up to Rs 5 lakh a month - or 60 lakhs a year!
Finally, compare the above to an Army officer, whose last salary hike on an average was 40 % compared to an MP's 300%.
However much the public may disapprove, for once all MPs have been united on the issue of increasing their own salaries, the only dissonance being why they can't get even more.
Read the article on Miracle Of Democracy.
Read the whole article:
A 300% hike is not enough for our Members of Parliament; now they want it to be 500%. Dissatisfied by the quantum of hike in the salaries approved by the Cabinet, the Samajwadi Party, Rashtriya Janata Dal and the Janata Dal (United) stalled proceedings in the Lok Sabha on Friday (August 20). MPs led by Lalu Prasad and Mulayam Singh Yadav created an uproar and forced two adjournments before the final one for the day.
The MPs contended that the government had insulted Parliament by rejecting the recommendation of its own Committee to raise the basic salary from Rs 16,000 to Rs. 80,000 per month. MPs have argued that their current salaries are lower than a secretary level government employee.
However, a back-of-the-book calculation by TIMES NOW has estimated that effectively MPs annual salary per month is now Rs 5 lakh including free air tickets, Dearness Allowance, accommodation, rent telephone and electricity bills and constituency allowance. Like all employees have a 'Cost to Company', to maintain their lifestyle these MPs have a Cost to the Nation that goes up to Rs 5 lakh a month - or 60 lakhs a year!
Finally, compare the above to an Army officer, whose last salary hike on an average was 40 % compared to an MP's 300%.
However much the public may disapprove, for once all MPs have been united on the issue of increasing their own salaries, the only dissonance being why they can't get even more.
Read the article on Miracle Of Democracy.
Wednesday, August 18, 2010
Be law makers again: Serious intent behind private members' bill
The primary role of the MP's is to legislate, though it is much forgotten by the Voters. Yet, Government exclusively draft new laws and pass them in the parliament. Any MP can introduce bills in the parliament as private members' bills, but it is bound to fail. Yet, many MP's do so for various reasons, including to prove their competence in coming up with the right solutions.MP's can do much to change the impression that they don't work once they get elected, writes C.V Madhukar in The Indian Express.
Read the whole article:
"In an era when most voters seem to ask the MP what he did for the constituency during his years in Parliament, it would be useful to remind ourselves that the primary role of our MPs is to legislate. Yet the task of drafting new laws, and seeing that they are passed by Parliament, has in practice become the exclusive preserve of the government of the day. "
"In such a situation, as individual MPs, what options do our MPs have to fulfil their role as law makers? In parliamentary parlance, any MP who is not a minister is referred to as a “private member”. Any MP can introduce bills in the House — as “private members’ bills”. "
"But, as with so many aspects of our Parliament, this is designed to fail. "
"When the probability that it will become law is close to zero, why is it that some MPs still make the effort of introducing these bills? A number of positive reasons: some MPs choose to use this as one more way of demonstrating their competence in not just understanding an issue, but also coming up with possible solutions through a legislative proposal. MPs also believe that this is an important way of signalling to the government the need for legislation on some critical issues. Even though the bill may not be passed, it sometimes brings out the “sense of the House” on an important policy issue, which can then be taken up by government."
"Before the voting age was reduced from 21 years to 18 years in 1989, there was a private member’s bill that proposed such a change. The debate on the floor of the House showed that MPs across party lines were in support of such a move. That bill was not passed, but the government later brought a bill to amend the Constitution to bring about this change. "
"There are some opportunities for MPs to express their views on issues, independent of the party diktat. In Question Hour, MPs ask questions of the government irrespective of whether they belong to the ruling party. Similarly during Zero Hour, MPs raise important issues cutting across party lines. Private members’ bills also offer the same space to MPs, one where they can raise issues independent of party considerations. It would be useful if more MPs used these opportunities to demonstrate leadership on critical issues on the floor of the House, as active MPs who take the institution of Parliament seriously enough to warrant active participation. This would go some way in addressing the perception that MPs do not do any work once elected. This will also help individual MPs prove that they are not mere “rubber stamps” of the political party leadership, which enforces its writ using the whip and the anti-defection law. "
Read the whole article on Miracle Of Democracy.
Read the whole article:
"In an era when most voters seem to ask the MP what he did for the constituency during his years in Parliament, it would be useful to remind ourselves that the primary role of our MPs is to legislate. Yet the task of drafting new laws, and seeing that they are passed by Parliament, has in practice become the exclusive preserve of the government of the day. "
"In such a situation, as individual MPs, what options do our MPs have to fulfil their role as law makers? In parliamentary parlance, any MP who is not a minister is referred to as a “private member”. Any MP can introduce bills in the House — as “private members’ bills”. "
"But, as with so many aspects of our Parliament, this is designed to fail. "
"When the probability that it will become law is close to zero, why is it that some MPs still make the effort of introducing these bills? A number of positive reasons: some MPs choose to use this as one more way of demonstrating their competence in not just understanding an issue, but also coming up with possible solutions through a legislative proposal. MPs also believe that this is an important way of signalling to the government the need for legislation on some critical issues. Even though the bill may not be passed, it sometimes brings out the “sense of the House” on an important policy issue, which can then be taken up by government."
"Before the voting age was reduced from 21 years to 18 years in 1989, there was a private member’s bill that proposed such a change. The debate on the floor of the House showed that MPs across party lines were in support of such a move. That bill was not passed, but the government later brought a bill to amend the Constitution to bring about this change. "
"There are some opportunities for MPs to express their views on issues, independent of the party diktat. In Question Hour, MPs ask questions of the government irrespective of whether they belong to the ruling party. Similarly during Zero Hour, MPs raise important issues cutting across party lines. Private members’ bills also offer the same space to MPs, one where they can raise issues independent of party considerations. It would be useful if more MPs used these opportunities to demonstrate leadership on critical issues on the floor of the House, as active MPs who take the institution of Parliament seriously enough to warrant active participation. This would go some way in addressing the perception that MPs do not do any work once elected. This will also help individual MPs prove that they are not mere “rubber stamps” of the political party leadership, which enforces its writ using the whip and the anti-defection law. "
Read the whole article on Miracle Of Democracy.
Sunday, October 24, 2004
The easy guide to how much money you spend on Parliament
The nation spends 37,000 Rs every minute for the parliament to function properly. There is an increase of 3400 percentage in the cost per MP in the last twenty years. The members of Parliament even collect allowances when they boycott the Parliament. They are entitled to several other allowances too, writes Barun Mitra in The Indian Express.
At RS 437 crore in 2003-04, it costs the nation Rs 37,000 per minute to keep Parliament functioning.
The 400 hours estimated to have been lost in the last two sessions of Parliament in June, July and August 2004 have meant a financial loss to the exchequer ranging from Rs 88 crore to 207 crore.
The time parliamentarians spend discussing budgetary issues has declined from 23 per cent in 1970s to a mere 10 per cent today. And in 2004, the Finance Bill had to be passed without any debate at all.
The cost per MP (790 MPs, combining both houses) has risen from Rs 1.58 lakh in 1983-94 to 55.34 lakh in 2003-04. An increase of 3,400 per cent!
During the same period, consumer price index increased 500 per cent, and the average emolument for public sector employees increased 900 per cent.
It has been reported in the media, that 400 hours or 24,000 minutes were lost due to disruption of Parliamentary proceedings in the last two sessions spread over June, July and August. For the first time, even the finance bill could not be debated, ‘‘tainted ministers’’, Savarkar and other issues stalled parliament for days.
There has been a worrisome decline in terms of time spent on issues such as the union budget. According to one estimate, between 1952 and 1979, the Parliament devoted on an average 23% of its time on discussing and debating budget related issues. However, between 1980 and 2001 the time devoted to budgetary issues had come down to only 10%. In addition, the number of days when Parliament is in session has been steadily declining from 143 days in 1980 to merely 90 days 2001. This includes all the three basic sessions of Parliament — Budget session, monsoon session and winter session.
At a cost of about Rs. 37,000 per minute or about Rs. 22 lakh an hour or Rs. 1.7 crore per day (assuming that Parliament works for 245 days a year for 8 hours a day), on the basis of annual budgetary allocation for both houses of Parliament in 2003-04 at Rs 437 crore, the total loss in terms of public money comes to about Rs 88 crore or USD 19.5 million, for the 400 hours in the first two sessions of 14th Parliament.
Earlier, when members used to boycott Parliament, they did not collect their daily parliamentary allowances. Today, however, MPs feel free to disrupt the house from within and have no compunction about collecting their allowance for their labour. If members don’t sign their attendance and decline to collect their daily allowance at Rs. 500 days, then the exchequer could at least save Rs 3,95,000 each day for the 790 member. In the past two decades, the budgetary allocation for both houses of Parliament has increased from a mere Rs 12.49 crore in 1983-84, to Rs. 437.15 crore in 2003-04. A whopping 35 fold increase in 20 years!
As a point of comparison, the general consumer price index for industrial workers increased only five fold between 1982 and 2004. Even the per capita emoluments for the much vaunted public sector employees increased from Rs 21,549 in 1983-84 to Rs 1,93,205 in 2001-02, about 9 fold increase.
In contrast, on a per capita basis, the expenditure incurred on each of our 790 Members of Parliament of both houses, in 2003-04 at Rs 437 crore, comes to about Rs 55 lakh per MP. A 3400% increase over two decades. It was a mere Rs 1.58 lakh in 1983-84.
This in a country where the per capita income is estimated at about USD 450/- or Rs 20,250/-, which even in purchasing power parity (PPP US dollar 2500/-) terms would translate in to Rs. 1,12,500/-.
Our MPs cost us about 20 times more than what an average industrial worker earns in a year, and about 40 times the earnings of an ordinary citizen. And all this is after putting in only about 80 parliamentary working days in a year, compared to about 250 days put in by an urban salaried worker.
The annual cost of Rs 300 crore may look to be a small price to pay for maintaining Parliamentary democracy in India. But that is only the minimum direct cost. If one factors in mis-governance, then the total cost of Indian Parliament begins to look very formidable indeed.
Increasingly, legislators officiate as executives. The MPs Local Area Development Fund (MPLAD), which entitles each Member of Parliament to allot Rs 2 crore annually towards development projects facilitates this dilution of legislative functions. 57 years after Independence, India has ranked consistently around the 125th level on most international socio-economic indices, finding its place among the perpetually poor nations of the world.
While the costs are significant, Indian democracy is also extremely competitive. Almost half the sitting members lose their seat at every general election. After all, that is the only way for the voters to hold their elected representatives to account. One can only hope that this will induce the elected representatives to look afresh at the core issue of governance, if only to increase their own prospect of getting re-elected.
Salaries and perks of Members of Parliament.
MPs are paid salaries and allowances along with travel and other privileges so that they may perform their responsibilities as lawmakers without fear or favour. According to an estimate made a few years ago, this is what an MP makes in terms of salaries and allowances:—
1.Constituency allowance: Rs 12,000 per month.
2.Allowance for Attending Parliament: Rs 400 per day.
3.Office allowance: Rs 14,000/- per month.
4.Secretarial allowance: Rs 10,000 per month.
5.Stationery and postage: Rs 3,000/-.
6.Postage and franking: Rs 1,000/- per month.
Perks: (monetised estimates)
1.Each MP is entitled to a free house, transport to Parliament, and subsidised food. The cost maintenance and furnishing of the house is borne by the government as well. This could easily come to about Rs 1,20,000/- annually towards housing.
2.A daily travel allowance of Rs 8 per kilometre, which could translate in to Rs 48,000 for a chauffer driven car during session. In addition, a conservative estimate of rs 24,000 for food. Both these could total about rs 75,000 per year.
3.Each MP get 50,000 units of free electricity every year. At a conservative rate of rs 2.,50 per unit, this will come to Rs 1,25,000/-. In addition, water is provided free.
4.Each MP is entitled to 3 telephones, one in the office, one at home, and one in the constituency, and total free calls could be 1,70,000 free local calls per year. One of these lines can be used for connecting to the Internet. But MPs have to pay for these facilities if they use them beyond the free limit. Unutilised free calls can be transferred to their mobile phones. At a minimum the monetised value of this benefit would be about Rs 2 lakh per anum.
5.An MP can travel 32 times by air (business class) anywhere within India, along with his of her spouse of a companion. He or she can travel another 8 times from the constituency to Delhi to attend Parliament sessions. At an average air fare of Rs 7,000, this could easily come to Rs 5,60,000/- annually.
6.When travelling abroad on an official visit, the MP gets a free business class ticket, along with a daily allowance which depends on the country being visited.
7. Each MP is entitled to unlimited free passes to travel (first class or AC 2-tier) by train any where in the country, along with a companion. The annual rail fare could easily come to about Rs 1,00,000/-.
8. Most medical expenses of an MP are taken care of under the Contributory Health Service Scheme of the Union Government.
9. Each MP is entitled to a pension for life. (This was added by the previous NDA government). The basic pension is Rs 3000 per month, and it increases as per the length of service in Parliament. There are additional travel and medical benefits for former MPs as well.
At RS 437 crore in 2003-04, it costs the nation Rs 37,000 per minute to keep Parliament functioning.
The 400 hours estimated to have been lost in the last two sessions of Parliament in June, July and August 2004 have meant a financial loss to the exchequer ranging from Rs 88 crore to 207 crore.
The time parliamentarians spend discussing budgetary issues has declined from 23 per cent in 1970s to a mere 10 per cent today. And in 2004, the Finance Bill had to be passed without any debate at all.
The cost per MP (790 MPs, combining both houses) has risen from Rs 1.58 lakh in 1983-94 to 55.34 lakh in 2003-04. An increase of 3,400 per cent!
During the same period, consumer price index increased 500 per cent, and the average emolument for public sector employees increased 900 per cent.
It has been reported in the media, that 400 hours or 24,000 minutes were lost due to disruption of Parliamentary proceedings in the last two sessions spread over June, July and August. For the first time, even the finance bill could not be debated, ‘‘tainted ministers’’, Savarkar and other issues stalled parliament for days.
There has been a worrisome decline in terms of time spent on issues such as the union budget. According to one estimate, between 1952 and 1979, the Parliament devoted on an average 23% of its time on discussing and debating budget related issues. However, between 1980 and 2001 the time devoted to budgetary issues had come down to only 10%. In addition, the number of days when Parliament is in session has been steadily declining from 143 days in 1980 to merely 90 days 2001. This includes all the three basic sessions of Parliament — Budget session, monsoon session and winter session.
At a cost of about Rs. 37,000 per minute or about Rs. 22 lakh an hour or Rs. 1.7 crore per day (assuming that Parliament works for 245 days a year for 8 hours a day), on the basis of annual budgetary allocation for both houses of Parliament in 2003-04 at Rs 437 crore, the total loss in terms of public money comes to about Rs 88 crore or USD 19.5 million, for the 400 hours in the first two sessions of 14th Parliament.
Earlier, when members used to boycott Parliament, they did not collect their daily parliamentary allowances. Today, however, MPs feel free to disrupt the house from within and have no compunction about collecting their allowance for their labour. If members don’t sign their attendance and decline to collect their daily allowance at Rs. 500 days, then the exchequer could at least save Rs 3,95,000 each day for the 790 member. In the past two decades, the budgetary allocation for both houses of Parliament has increased from a mere Rs 12.49 crore in 1983-84, to Rs. 437.15 crore in 2003-04. A whopping 35 fold increase in 20 years!
As a point of comparison, the general consumer price index for industrial workers increased only five fold between 1982 and 2004. Even the per capita emoluments for the much vaunted public sector employees increased from Rs 21,549 in 1983-84 to Rs 1,93,205 in 2001-02, about 9 fold increase.
In contrast, on a per capita basis, the expenditure incurred on each of our 790 Members of Parliament of both houses, in 2003-04 at Rs 437 crore, comes to about Rs 55 lakh per MP. A 3400% increase over two decades. It was a mere Rs 1.58 lakh in 1983-84.
This in a country where the per capita income is estimated at about USD 450/- or Rs 20,250/-, which even in purchasing power parity (PPP US dollar 2500/-) terms would translate in to Rs. 1,12,500/-.
Our MPs cost us about 20 times more than what an average industrial worker earns in a year, and about 40 times the earnings of an ordinary citizen. And all this is after putting in only about 80 parliamentary working days in a year, compared to about 250 days put in by an urban salaried worker.
The annual cost of Rs 300 crore may look to be a small price to pay for maintaining Parliamentary democracy in India. But that is only the minimum direct cost. If one factors in mis-governance, then the total cost of Indian Parliament begins to look very formidable indeed.
Increasingly, legislators officiate as executives. The MPs Local Area Development Fund (MPLAD), which entitles each Member of Parliament to allot Rs 2 crore annually towards development projects facilitates this dilution of legislative functions. 57 years after Independence, India has ranked consistently around the 125th level on most international socio-economic indices, finding its place among the perpetually poor nations of the world.
While the costs are significant, Indian democracy is also extremely competitive. Almost half the sitting members lose their seat at every general election. After all, that is the only way for the voters to hold their elected representatives to account. One can only hope that this will induce the elected representatives to look afresh at the core issue of governance, if only to increase their own prospect of getting re-elected.
Salaries and perks of Members of Parliament.
MPs are paid salaries and allowances along with travel and other privileges so that they may perform their responsibilities as lawmakers without fear or favour. According to an estimate made a few years ago, this is what an MP makes in terms of salaries and allowances:—
1.Constituency allowance: Rs 12,000 per month.
2.Allowance for Attending Parliament: Rs 400 per day.
3.Office allowance: Rs 14,000/- per month.
4.Secretarial allowance: Rs 10,000 per month.
5.Stationery and postage: Rs 3,000/-.
6.Postage and franking: Rs 1,000/- per month.
Perks: (monetised estimates)
1.Each MP is entitled to a free house, transport to Parliament, and subsidised food. The cost maintenance and furnishing of the house is borne by the government as well. This could easily come to about Rs 1,20,000/- annually towards housing.
2.A daily travel allowance of Rs 8 per kilometre, which could translate in to Rs 48,000 for a chauffer driven car during session. In addition, a conservative estimate of rs 24,000 for food. Both these could total about rs 75,000 per year.
3.Each MP get 50,000 units of free electricity every year. At a conservative rate of rs 2.,50 per unit, this will come to Rs 1,25,000/-. In addition, water is provided free.
4.Each MP is entitled to 3 telephones, one in the office, one at home, and one in the constituency, and total free calls could be 1,70,000 free local calls per year. One of these lines can be used for connecting to the Internet. But MPs have to pay for these facilities if they use them beyond the free limit. Unutilised free calls can be transferred to their mobile phones. At a minimum the monetised value of this benefit would be about Rs 2 lakh per anum.
5.An MP can travel 32 times by air (business class) anywhere within India, along with his of her spouse of a companion. He or she can travel another 8 times from the constituency to Delhi to attend Parliament sessions. At an average air fare of Rs 7,000, this could easily come to Rs 5,60,000/- annually.
6.When travelling abroad on an official visit, the MP gets a free business class ticket, along with a daily allowance which depends on the country being visited.
7. Each MP is entitled to unlimited free passes to travel (first class or AC 2-tier) by train any where in the country, along with a companion. The annual rail fare could easily come to about Rs 1,00,000/-.
8. Most medical expenses of an MP are taken care of under the Contributory Health Service Scheme of the Union Government.
9. Each MP is entitled to a pension for life. (This was added by the previous NDA government). The basic pension is Rs 3000 per month, and it increases as per the length of service in Parliament. There are additional travel and medical benefits for former MPs as well.
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