Austerity - Economic Emergency to curb financial profligacy

Modi’s initiative to announce 30% cut in pay scales of MPs and MPLAD funds for 2-years is just the beginning of ushering austerity measures for COVID-19. However, Modi must act decisively with utmost expedition to mercilessly curb the financial profligacy of the government machinery at all levels through implementation of aggressive “Austerity” measures.

 

 

If Modi means business, he must start with his residence – 7 Lok Kalyan Marg (formerly Race Course Road) expenditure cuts. Next, Rashtrapathi Nilayam should also be directed to implement austerity. It must start with reduction of large security contingent and cavalcade of cars. So also, discontinue the grand ‘award’ ceremonies in recognition of gallantry awards and distinguished services rendered to the nation in the name of Vir Chakras and Padma series.

 

Left to the SPG and NSG authorities, they would conjure “threat perceptions” to the very highest degree for any VIP anywhere else in the world to justify additional accretions to their force levels and modernization requirements. Also, the latest pay scales, perks and privileges of elected representatives need a dramatic reduction until the GDP growth rallies towards 8%. Let me highlight the current basic pay scales at the Central and State governments at the Apex levels. The President of India receives a pay scale of Rs. 5 lakh followed by Vice-President with Rs. 4 lakh. Governors of States get a pay pack of Rs.3.5 lakh. The Prime Minister gets Rs. 2 lakh salary. And, the Lieutenant Governors Rs.1.10 lakh. The Chief Justice of India gets Rs.2.8 lakh; Cabinet Secretary, Supreme Court Judges, Chief Justices of High Courts, Chiefs of Army, Navy, Air Force, CEC, CAG, and Chairman of Union Public Service Commission get Rs.2.5 lakh.

 

The Judges of High Court, Secretaries to Government of India, Special Secretaries to Government of India, Chief Secretaries of State Governments, Additional Chief/Special Chief Secretaries to State Governments, Lieutenant Generals Rs.2.25 lakh. In contrast, the pay of Chief Ministers vary from state to state. Interestingly Telangana CM receiving Rs.4.1 lac, while the biggest state like UP CM gets just Rs 3.35 lac. But, another privileged CM is Delhi, who draws Rs 3.90 lac salary. This is followed by Maharashtra CM’s 3.4 lac package, Andhra’s 3.35 lac, Gujarat Rs 3.21 lac, Himachal Rs 3.10 lac, Madhya Pradesh 2.5 lac, Haryana Rs 2.2 lac, Bihar 2.15 lac, West Bengal 2.10 lac, Tamil Nadu Rs 2.05 lac, Karnataka 2 lac, Sikkim Rs 1.90 lac, Tripura Rs 1.85 lac, Mizoram Rs 1.84 lac, Kerala Rs 1.8 lac, Rajasthan 1.75 lac, Uttarakhand Ts 1.75 lac, Odisha Rs 1.60 lac, Meghalaya Rs 1.5 lac, Arunachal Pradesh Rs 1.33 lac, Assam Rs 1.25 lac, Manipur Rs 1.2 lac, Puducherry Rs 1.2 lac, Nagaland Rs 1.10 lac.