New Delhi, Aug. 23: In a bid to placate the agitating MPs over hike in their salary, the government on Monday cleared a proposal to increase by another `10,000 in their monthly allowances, which they will be getting over and above the amount announced last week.
A decision to this effect was taken at a meeting of the Union Cabinet chaired by the Prime Minister, Dr Manmohan Singh, sources said, adding that the proposed additional allowance of `10,000 would paid to the legislators in two equal parts under the heads — constituency expenses and office expenses.
It is learnt from the sources that the finance minister, Mr Pranab Mukherjee, moved the proposal for a hike in constituency and office allowances by `5,000 each, which was immediately approved by the Cabinet.
“These allowances are going to be exempt from income tax,” sources added.
The decision to further hike MPs’ emoluments came following resentment among the legislators over the increase proposed by the government last week.