THE SALARIES AND ALLOWANCES OF MINISTERS BILL, 1970

Summary

The Salaries and Allowances of Ministers Bill, 1970, introduced in the Lok Sabha by N. Dandekar and M. R. Masani, proposes to consolidate and amend the law governing the remuneration and official benefits of Union ministers. The Bill defines “Minister” to include Deputy Ministers, sets monthly salaries of Rs. 37,500 for Ministers and Rs. 16,250 for Deputy Ministers, and provides for the taxation of their full salaries under the Income-tax Act, 1961.

Its provisions specify charges for furnished official residences, travelling and daily allowances, medical treatment, motor-car advances, and deductions for private travel and use of official transport. The Bill abolishes the general sumptuary allowance except for the Prime Minister, requires ministers to pay for benefits and amenities at prescribed rates, permits the Central Government to make implementing rules, and repeals the Salaries and Allowances of Ministers Act, 1952. The supporting statement of objects, notes on clauses, and financial memorandum present the measure as a way to make the total value and public cost of ministerial emoluments transparent while preserving approximately the existing net “take-home” position. The document is dated 2 September 1970 and estimates net additional annual expenditure at Rs. 9,850.

Key points

• The Bill consolidates and amends the law relating to salaries and allowances of Union Ministers.
• It sets monthly salaries at Rs. 37,500 for Ministers other than Deputy Ministers and Rs. 16,250 for Deputy Ministers.
• The full salary is to be included in a Minister’s taxable income under the Income-tax Act, 1961.
• Ministers are charged for official residences, staff, electricity, water, telephone services, and specified travel and transport uses.
• The Bill abolishes sumptuary or entertainment allowances for Ministers other than the Prime Minister.
• It provides for medical treatment, official travel, motor-car advances bearing interest, and post-office residence rights.
• The supporting memoranda state that the measure is intended to disclose the true cost of ministerial benefits while broadly preserving existing net emoluments.
• The financial memorandum estimates net additional annual expenditure of Rs. 9,850.