New Delhi: The Union Cabinet on Monday held a meeting under the Chairmanship of Prime Minister Narendra Modi on the situation in the country in lock down. Prime Minister interacted with the Cabinet Ministers via video conference.

The Cabinet discussed on the challenges of an economy that is heading towards a downward spiral and the rapidly escalating Covid- 19 epidemic. The Union Cabinet on Monday cleared an ordinance affecting a 30% monthly salary cut on all MPs for one year. The salary cut effect initiated from April- 2020 to 12 months. The Cabinet also decided to abolish the MPLADs funds for two years i.e. 2020 to 2021, 2021 to 2022. The President, Vice- President and all Governors also decided to voluntarily accept a 30% cut in their salaries.

According to the official sources the decision was conveyed to the Centre. The money saved through these salary cuts and the abolition of the MPLADs funds would be deposited in the consolidated funds of India, which the Centre wants to use to prepare an action plan to combat the challenges posed by the pandemic and boost the domestic economy.

While interacting with his Ministers, Prime Minister asked them to prepare a business continuity plan and be ready to combat the economic impact of the Covid- 19 pandemic on war footing. According to the sources the Cabinet meeting held via video conferencing for the first time after the lock down was announced decided to promulgate an ordinance for a 30% cut in salaries of all MPs for one year. The allowances of MPs will also fall under the deduction, sources said.