Govt in fix as MPs seek more for car, pension

Family pension is currently allowed only for MPs who expire during office and is Rs 1,500 per month for five years after his death.

A paper by the Ministry of Parliamentary Affairs says a higher pension would mean an additional expense of Rs 36 lakh on Lok Sabha MPs and Rs 1.62 lakh on Rajya Sabha MPs. “If spouse and dependents of deceased ex-MPs are also provided family pension, as desired in the bill, the financial implications will increase manifold which is difficult to estimate at present,’’ it says.

The ministry’s argument is that the MPs should not compare their pensionary benefits with those of government servants as the two served different objectives. “Pension/family pension to MPs are provided to recognize their services to the nation and Parliament.’’

The paper says the government’s biggest fear is raising the conveyance advance to Rs 4 lakhs from Rs 1 lakh. “The increase in conveyance advance will lead to a corresponding increase in the monthly recovery. As the salary of an MP is Rs 12,000 per month, it will become difficult to recover the loan in a period of five years,’’ says the note.

The problem would get compounded if the MP was to take the loan towards the end of his tenure. “An ex-MP is provided a minimum pension of Rs 3,000 per month. Recovery of advance from the pension will be very difficult,’’ it says.

It may be a tricky situation for the government when the discussion resumes tomorrow as on Friday, MPs from Congress, BJP, Samajwadi Party, RJD, RSP and Swatantra Bharat Paksh had buried the hatchet and plugged for the hike.

Bill proposes

• Family pension for life to spouse on death of an MP — present or former. This is currently allowed only for MPs who expire during office and is Rs 1,500 per month for five years after his death

• Increase in conveyance advance from Rs 1 lakh to Rs 4 lakh