The Lok Sabha has passed the bill to revise the salary of members of parliament. Much of the debate in the media has been on the wealth of current MPs and the lack of accountability. It is important to focus as well on structural issues related to remunerating legislators. Under the bill, the base salary of MPs is being raised to Rs.50,000 from Rs.16,000 per month. The daily allowance paid to MPs when they attend parliament is being hiked to Rs.2,000 from Rs.1,000. The constituency allowance is being increased to Rs.45,000 per month from Rs.20,000 and office expenses (for staff, stationery and postage) to Rs.45,000 per month from Rs.20,000. Pension for former MPs will be Rs.20,000 per month instead of the present Rs.8,000. Other than these, MPs get accommodation in Delhi, which varies from a hostel in Vitthalbhai Patel House to two-bedroom flats and bungalows, all in central Delhi. MPs get reimbursement of electricity, water, telephone and internet charges. They (and their family) are also reimbursed for 34 one-way air tickets from their constituency to Delhi. In a parliamentary democracy, compensation for legislators should be sufficient to ensure their independence and autonomy. It should attract professionals who can devote their full time to legislative work. There should be a sufficient support system to enable legislators perform their duties effectively. There are mainly three issues that need to be resolved while fixing the compensation package for legislators. First, MPs fix their own salaries and allowances, which results in a conflict of interest. Second, every time the salary is revised upwards, there is an adverse media and public reaction. The outcome is that MPs' salaries are significantly lower than that for any other position of similar responsibility in the public or private sector. The low salaries may deter honest persons, without other income sources, from contesting elections. Third, reimbursements of office expenses are classified as 'allowances'. Thus, expenses for office staff, telephone charges, etc. are often seen as part of their compensation. Contrast this with the treatment for government or private sector employees. The costs of office support staff, rental, communication and travel costs are not counted as their salary or perks. The process in India is similar to that in some countries. The US Congress and the German Bundestag determine their own salaries. There are two alternative approaches seen in some other democracies. Some countries appoint an independent authority to determine salaries. Some others peg the salary to that of public officials. For example, New Zealand has a remuneration tribunal which is tasked to fix salaries based on being (a) fair relative to levels of remuneration elsewhere; (b) fair to person being remunerated and the taxpayer; (c) adequate to recruit and retain competent persons. In Canada, a commission is appointed after every general election and salaries are then indexed to the federal government's annual wage rate index. Australia has a remuneration authority that links the salary to that in the Principal Executive Office. In the UK, the Senior Salaries Review Board determines salaries, which are then voted upon by parliament. The Scottish parliament indexes its salaries to that of British MPs. In France, the salary of the legislator is the average of the highest and lowest paid official in the seniormost level of the government. There were two distinct themes during last week's Lok Sabha debate. Several MPs discussed structural issues. Some MPs - L.K. Advani, Ramachandra Dome, Sanjay Nirupam, Shailendra Singh and Pinaki Misra - suggested that the government establish an independent commission for determining salaries. Advani pointed out that a decision to that effect had been taken in an all-party meeting held by the Speaker in may 2005 and demanded that the government announce the formation of such a commission before the end of the current session of parliament. Some MPs - Dhananjay Singh, Sanjay Nirupam and Shailendra Kumar -- focussed on the need for support structures such as office space, research staff and assistants in the constituency. They felt that these would help MPs examine proposed laws and rules and monitor the work of the government. Nirupam and Misra suggested that MPs' salaries be linked to performance; salaries should be cut for any time lost due to disruption. Some MPs highlighted the need for pension and accommodation for former MPs. Sharad Yadav, Raghuvansh Prasad Singh and Sansuma Khunggur Bwiswmuthiary requested that the pension be raised to Rs 25,000 per month. Yadav and Bwiswmuthiary also said that former MPs be allocated residential accommodation in Delhi. The bill will next be discussed in the Rajya Sabha. The government agreed that there is merit in forming an independent commission. It is however uncertain whether the government will accede to Advani's demand that the commission be announced in the next couple of days. - M.R. Madhavan This column has been published by IANS today.

Parliament voted on the Demands for Grants for the Ministry of Home Affairs on May 02, 2012. During the debate, MPs expressed concern over the status of police forces in different States of the country.  They emphasised  the need to augment the capability of police forces. Though ‘Police’ and ‘Public Order’ are State subjects, the union government provides assistance to States for strengthening their forces.  For instance, the Ministry of Home Affairs has been implementing a non-plan scheme for ‘Modernization of Police Forces’ since 1969-70.  Under the scheme assistance is provided in the form of grants-in-aid towards construction of secure police stations, outposts, for purchase of vehicles, equipment etc.  (To know more about the scheme, see an earlier blog post on the issue.) At the all India level, the sanctioned strength of State Police equals 20.6 lakh personnel.  Though there exist wide variations across States, at an average this amounts to 174 police personnel per lakh population.  However, the actual ratio is much lower because of high vacancies in the police forces.  At the aggregate level, 24% positions are vacant. The table below provides data on the strength of state police forces as in Jan, 2011

State Sanctioned strength Sanctioned policemen/ lakh of population Vacancy
Andhra Pradesh 1,31,099 155 31%
Arunachal Pradesh 11,955 966 42%
Assam 62,149 200 12%
Bihar 85,939 88 27%
Chhattisgarh 50,869 207 18%
Goa 6,108 348 16%
Gujarat 87,877 151 27%
Haryana 61,307 248 28%
Himachal Pradesh 17,187 256 22%
Jammu & Kashmir 77,464 575 6%
Jharkhand 73,005 235 30%
Karnataka 91,256 155 10%
Kerala 49,394 141 7%
Madhya Pradesh 83,524 115 9%
Maharashtra 1,53,148 139 10%
Manipur 31,081 1,147 26%
Meghalaya 12,268 469 17%
Mizoram 11,246 1,112 6%
Nagaland 24,226 1,073 0%
Orissa 53,291 130 18%
Punjab 79,565 291 14%
Rajasthan 79,554 118 11%
Sikkim 5,421 886 27%
Tamil Nadu 1,20,441 178 15%
Tripura 44,310 1,224 17%
Uttar Pradesh 3,68,260 184 59%
Uttarakhand 20,775 211 24%
West Bengal 72,998 81 18%
A&N Islands 4,417 1,018 22%
Chandigarh 7,873 695 22%
D&N Haveli 325 114 13%
Daman & Diu 281 140 6%
Delhi 81,467 441 1%
Lakshadweep 349 478 36%
Puducherry 3,941 352 25%
All India 20,64,370 174 24%

Source: Lok Sabha Unstarred Question No. 90, 13th March, 2012  and Lok Sabha Unstarred Question No. 1042, March 20, 2012