Finance Minister Arun Jaitley announced a pay hike for President, Vice President and Governor in his annual Budget speech on Thursday, 1 February. The Union Budget 2018 is the last full-year budget of the current government before the general elections in 2019.
The President’s salary will go up to Rs 5 lakh a month, the Vice-President will draw a salary of Rs 4 lakh per month and the Governor’s pay will be revised to Rs 3.5 lakh a month.
The Finance Minister also proposed inflation-linked revision of salaries of MPs in his budget speech.
Accepting the demand of MPs, Jaitley said that their salaries will be automatically revised every five years indexed to inflation.
Jaitley said that the present system, which provides for MPs to recommend increase in their salary, had invited criticism and was being changed.
"There has been 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.
"The law will also provide for automatic revision of emoluments every five years indexed to inflation," he added.
Several MPs in Lok Sabha had demanded hike in their salaries during debate on the Bill to hike salaries of judges of the Supreme Court and High Court in the Winter Session of Parliament.
Under the present system, a Parliamentary committee having members from both Houses of Parliament makes its recommendations on the salaries and allowances of MPs, and the government takes appropriate decision and brings an amendment Bill. Such amendment proposals are usually approved with consensus in Parliament.
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