Never ask a lady her age and an MP his wage. The points of debate last month was ironical (and quite recurring) “ the all-important one concerning fixing of rewards but no - not responsibilities for the law makers themselves.
There was a time when Parliamentarians would rather call the meagre honorarium they used to receive as allowance, the spirit was more of desh seva. An aide it is reported once went to Lal Bahadur Shastri when he was the Prime Minister and said “Shastriji “ MPs’ wages are too less, it would be in the fitness of things that their remunerations are increased. Shastriji had reportedly replied, “I want only those people in this field who will come knowing well that they come for doing seva and that there is no money here to make.”
Back in 2010 “ as in the Lok Sabha and the Rajya Sabha Booklets, the MPs’ salary including regular cash allowances stood at Rs 7.70 lacs a year. Additionally interest free loans, highly subsidised furnished accommodation, washing allowances, telephones, electricity, water, medical facilities are applicable.
Present
In the last revision, 7.7 lakhs rose to around Rs 18.8 lakhs, a hike of around 2.4 times with the sundry freebies applicable but not included here. And around 70 percent of the emoluments they get are tax free. In our system MPs themselves fix their own salaries.
A first term MP gets a lifelong pension at a minimum of Rs 20,000 a month even if he has been MP for one day. MPs can also work in other plum positions with exemptions in “Office of Profits”, they can carry on their own business or they can work for non-government organisations as well. More than 80 percent of our MPs have assets more than a crore of rupees and 30 percent of them have criminal cases pending against them.
This year, the MPs reportedly proposed a hike again of 100 percent in their emoluments and improved freebies like health schemes for family, “facilitations” at airports VIP style, increase in pensions for ex-MPs (in true OROP spirit). Close on the heels of the MPs’ proposed salary hike the Delhi government, not to be left behind, came out with a proposal for a hike of 4.2 times in the basic salaries of MLAs.
I am not at all even once attempting to say the numbers are too big or too small and if you ask me “ without any disrespect to Shastriji “ it is a fact that if we want quality we must pay for it.
Benchmarks
An MP in UK gets an annual of £74,000 + allowances and freebies. In France and Japan, salaries of an MP would be determined in relation to the salaries of the highest paid bureaucrat. In US, a Congressman would get around $1.5 lakhs. In Germany members of the Bundestaag would get a salary, which in the opinion of the executive is enough to ensure independence. Switzerland does not pay salaries at all to MPs “ only an allowance and leave.
In most countries MPs are full timers, however in US if you work elsewhere your emoluments should not exceed 15 percent of the salaries you get from the Congress.
In terms of a recent study in 37 countries, MPs of only six countries ” Tunisia, Venezuela, Sri Lanka, Nepal, Haiti and Panama, were paid less than Indian MPs.
According to a survey conducted by the Inter-Parliamentary Union, 31 percent of respondents stated that MPs’ salaries are determined in reference to the civil service salary scale. In the UK and Australia salaries are determined by independent bodies.
Two things stand out then. MPs salaries be best fixed by an independent panel and the salaries proposed should be commensurate with responsibilities and actual performances.
Performances
The last session parliament functioned for only nine percent of the scheduled time. There were 11 crucial bills in the agenda “ none of which could be passed. From the Lok Sabha secretariat records 40 percent of the actual scheduled time (Previous Lok Sabha) was lost due to interruptions and frequent adjournments. On the face of all this the government decided to appoint an independent commission to recommend MP’s emoluments “ but our law-makers sulk “ they say it would dilute the powers of the parliamentary body which does the job today.
Ours is the world’s largest democracy and it has stood its tests over six decades now. Without touching its basic fabric “ the selection of resources would always be a subject of “popularity” and “vote getting” strategies rather than a function of quality.
But in these premises as well there are great possibilities for improvements - for example establishment of a performance management system for each MP and a system of increments and promotions, say to ministerships or plum jobs in government bodies - dependent thereon. The periodic appraisals are done by a committee, of say the Speaker, the head of the particular parliamentary party and a professional appointed impartially.
Retain all perks “ but monetise and make them transparent and taxable. Increase the attendance allowance as a percentage of the C2G. And lastly pursue seriously plans for implementing the Right of Recall. A great democracy has to turn out quality and quality should be perceptibly visible in the parliamentarians in their functions for which pay should not be a bar.
Binayak Datta is a senior chartered accountant and a corporate consultant. He is also a visiting lecturer at prestigious educational institutions across Goa
