A day after deficit Budget, Punjab lawmakers get fat salary hike

Ruchika M Khanna

Tribune News Service

Chandigarh, March 19

“High salaries and pension bills” eating into its revenue had held the Punjab Government back from increasing its employees’ salaries. But, those governing and representing the state’s electorate have now decided to increase their own wages — from 100 per cent to 57 per cent.

A day after presenting the Budget with a huge revenue deficit of Rs 6,394 crore and a salary and pension bill of Rs 25,536.35 crore, the Punjab Cabinet, which met today under the chairmanship of Chief Minister Parkash Singh Badal, approved doubling the salary of the CM and Chief Parliamentary Secretaries.

The salaries of the Speaker, Deputy Speaker, Leader of the Opposition, all Cabinet Ministers and the Chief Parliamentary Secretaries have been increased by over 65 per cent, while of all 117 MLAs by 57 per cent.

The hike in the salaries of the entire governing class was recommended by a 14-member general purpose committee of the Vidhan Sabha. The committee’s report was submitted in January 2014, but had been kept in abeyance by the government citing the lack of resources available with the government to effect the hike.

Finance Department sources told The Tribune that the hike in salary and allowances of MLAs alone would lead to an additional burden of Rs 5.99 crore per annum, while the salary of the CM and his 17 Cabinet colleagues, Speaker, Deputy Speaker and 19 Chief Parliamentary Secretaries will take away another Rs 58 lakh from the state treasury. The increase in allowances of all these Ministers and Chief Parliamentary Secretaries is over and above this Rs 6.57 crore that goes as salaries.

The CM’s salary will increase from current Rs 50,000 a month to Rs 1 lakh; of all Cabinet Ministers, including Deputy CM and Speaker, Deputy Speaker and Leader of Opposition, from Rs 30,000 to Rs 50,000 per month. All legislators will now get Rs 25,000 against Rs 15,000 till now, while their total allowances have been increased from Rs 44,000 to Rs 68,000. The free travel facility for MLAs has been hiked from Rs 2 lakh to Rs 3 lakh per annum and the ex gratia from Rs 1 lakh to Rs 5 lakh.

Even the limit for diesel and petrol for security vehicles being used by the MLAs has been raised from 500 litre to 700 litre. Dearness allowance (DA) of legislators will go up from Rs 1,000 to Rs 1,500. The former MLAs, too, have got a pie of the state’s largesse. The pension of a one-term MLA is hiked from Rs 7,500 (plus DA) to Rs 10,000 (plus DA), and that of a two-term MLA from Rs 12,500 to Rs 17,500. The ex gratia to former MLAs has been increased from Rs 1.50 lakh to Rs 5 lakh.

While approving the hike in salary, the government has maintained that their salary has not been revised since 2010 and the hike was in consonance with the salary and perks being paid to legislators and ministers in neighboring states of Haryana and HP. The government maintains that even with this hike, the amount of salary paid to the entire governing class is less than what is paid in the neighboring states.

The amendments to five Bills that paved way for the salary hike will be tabled in the Vidhan Sabha for final nod.