MANU/PIBU/0335/2018

Department/Board : Press Information Bureau

Date : 28.02.2018

Cabinet approves Amendments to Housing and Telephone Facilities Rules, Constituency Allowance Rules and Office Expense Allowance Rules for MPs

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved Amendment to (i) The Housing and Telephone Facilities (Members of Parliament) Rules, 1956 (ii) The Members of Parliament (Constituency Allowance) Rules, 1986, (iii) The Members of Parliament (Office Expense Allowance) Rules, 1988. The details are:

• Increase in the monetary ceiling of furniture at residence of Members of Parliament from Rs. 75,000/- (Rs. 60,000/- for durable and Rs. 15,000/- for nondurable) to Rs. 1,00,000/- (Rs. 80,000/- for durable and Rs. 20,000/- for nondurable) w.e.f. 01.04.2018 which shall be increased after every five years commencing from 01.04.2023 on the basis of Cost Inflation Index provided under clause (v) of Explanation to section 48 of the Income-tax Act, 1961.

• Broadband internet facility may be provided to Members of Parliament w.e.f. August 2006 against 10,000 surrendered call units per annum on land line connection. The facility of broadband internet to Members of Parliament is already in practice since August, 2006 and it will now be incorporated in 'the Housing and Telephone Facilities (Members of Parliament) Rules, 1956' for its regularization through its amendment with retrospective effect by inserting a new rule.

• Wi-fi zone with monthly tariff plan of Rs. 1700/- from 1.9.2015 to 31.12.2016 and Rs. 2200/- from 1.1.2017 onwards may be created in the Members' residential areas for providing high speed internet connection (FTTH connection). This facility will be in addition to the existing broadband facility. For this purpose, three new sub-rules are to be inserted in 'the Housing and Telephone Facilities (Members of Parliament) Rules, 1956'.

• Increase in the Constituency Allowance for Members of Parliament from Rs. 45,000/- per month to Rs. 70,000/- per month w.e.f. 1.4.2018 which shall be increased after every five years commencing from 01.04.2023 on the basis of Cost Inflation Index provided under clause (v) of Explanation to section 48 of the Income-tax Act, 1961.

• Increase in the Office Expense Allowance for Members of Parliament from Rs. 45,000/- per month (Rs. 15,000/- for expenses on stationary items and postage plus Rs. 30,000/- for a computer literate person engaged by Member of Parliament for obtaining secretarial assistance) to Rs. 60,000/- per month (Rs. 20,000/- for expenses on stationary items and postage plus Rs. 40,000/- for a computer literate person engaged by Member of Parliament for obtaining secretarial assistance) w.e.f. 01.04.2018 which shall be increased after every five years commencing from 01.04.2023 on the basis of Cost Inflation Index provided under clause (v) of Explanation to section 48 of the Income -tax Act, 1961.

The decision of the Cabinet shall be conveyed to the Joint Committee on Salaries and Allowances of Members of Parliament for making amendments in the relevant rules which shall be get approved and confirmed by the Chairman of the Council of States and the Speaker of House of the People and will be published in the Official Gazette.

Additional financial implication on account of the decision taken by the Cabinet would be Rupees 39,22,72,800/- (Rupees Thirty nine crores, twenty two lakhs, seventy two thousand & eight hundred) approximately of recurring expenditure and Rupees 6,64,05,400/- (Rupees Six crores, sixty four lakhs five thousand & four hundred) approximately of non-recurring expenditure.

Background:

Article 106 of the Constitution provides that the Members of either House of Parliament shall be entitled to receive such salaries and allowances as may from time to time be determined by Parliament by law. Consequently, the Salary, Allowances and Pension of Members of Parliament Act (MSA Act) was enacted in 1954 (Act 30 of 1954). Section 9 of the MSA Act provides for constitution of a Joint Committee of both Houses of Parliament for the purpose of making rules under the Act. The Joint Committee has the powers to make rules after consultation with the Central Government to provide for all or any of the matters enumerated in the said section.