State to cut 30% salaries of legislators, Ministers for one year

It is expected to save ₹15.36 crore; no talks yet on slashing salaries of government employees

April 09, 2020 08:07 pm | Updated 08:07 pm IST - Bengaluru

Cash-strapped Karnataka on Thursday decided to slash 30% salary and allowances of MLAs, MLCs, the Speaker, the Deputy Speaker, and all Ministers for one year. The cut will save the State exchequer ₹15.36 crore.

Briefing on the decisions taken at a meeting of the State Cabinet, Law and Parliamentary Minister J.C. Madhuswamy said an Ordinance would be promulgated for reducing the salaries. Governor Vajubhai R. Vala too has agreed for a 30% cut in his salary.

The Union Cabinet has already taken a decision on reducing the salaries of MPs by 30% and suspended MPLAD funds for two years to mobilise more funds for the fight against COVID-19. Chief Minister B.S. Yediyurappa is said to have consulted Leader of the Opposition in the Legislative Assembly Siddaramaiah and the latter endorsed the Chief Minister’s suggestion, sources said.

Following sharp reduction in the availability of cash with the government, the Finance Department issued a notification a few days ago restricting expenditure to most essential items such as salaries, pensions, and basic administrative costs.

Noting that “all expenditure on fighting COVID-19 will be given utmost priority,” the Finance Department laid out guidelines on release of funds and delegation of financial powers for April. Citing the prevailing situation of lockdown owing to COVID-19, the order stated that “the revenues of the State government are severely constrained”.

Till now, no discussion has been held on slashing salaries of the more than six lakh government employees. The Opposition Congress has already opposed any reduction in salaries of the government employees on the grounds that they have many commitments such as payment of housing rent, utility bills, repaying loan instalments, and school/college fee of children.

Like the last week’s Cabinet meeting, the Chief Minister and his Cabinet colleagues held the Thursday’s meeting at the Conference Hall of the State Secretariat and maintained social distance.

Ordinances on GST, withdrawal of cases on farmers

The Karnataka government has decided to promulgate an Ordinance for extending the deadline for Goods and Service Tax (GST) return filing for March, April, and May to June 30, 2020.

The State Cabinet decided this at a meeting on Thursday. The Centre has already issued such a notification.

The government has also decided to promulgate an Ordinance for withdrawing cases registered against farmers under the land grabbing prohibition Act. Farmers of Kodagu, Shivamogga, and Chikkamagaluru districts, who had applied for regularisation of land, had been slapped with land grabbing cases. Farmers have been cultivating these land for several years and had applied for regularisation.

Through the Ordinance, it will be decided to amend the law to bail out farmers from these cases. A committee set up at the government level will decide on regularisation of such land.

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