Despite Prime Minister Modi’s strongman reputation for pushing bold reforms, why is there a veiled suspicion on the issue of multiple pensions and tax exemptions for politicians
Punjab is the only state with a “one person, one pension” law
The Himachal Pradesh Assembly took a historic step on 4 September 2024 by passing the Himachal Pradesh Legislative Assembly (Members’ Allowances and Pension) Amendment Bill 2024, making it the first state in India to cancel the pensions of MLAs disqualified under the anti-defection law. The Bill states that any MLA disqualified under the 10th Schedule of the Constitution (anti-defection law) will no longer receive a pension.
This legislative action comes after six Congress MLAs—Sudhir Sharma, Ravi Thakur, Rajinder Rana, Inder Dutt Lakhanpal, Chetanya Sharma and Devinder Kumar—were disqualified earlier this year for defying the party whip during a crucial vote on the 2024-25 budget. Despite Sudhir Sharma and Inder Dutt Lakhanpal winning the by-elections and returning to the Assembly, four others lost their reelection bids. These MLAs had also voted in favour of BJP candidate Harsh Mahajan during the Rajya Sabha elections in February 2024.
The bill is a notable step in addressing political defections, but some critics argue it does not go far enough. While disqualification results in a temporary stop to pension benefits, many believe the law should be more stringent. Activists have demanded stricter measures, such as banning all pensions for disqualified politicians, even if they later return to office, and only allowing new pensions after re-election.
The move also raises wider concerns about the perks received by Indian politicians. Currently, legislators and ministers can receive multiple pensions based on their tenure in various offices, a practice that has sparked public outrage. Punjab is the only state that has addressed this problem by introducing a “one person, one pension” law, thanks to the efforts of the Aam Aadmi Party.
Public opinion has long questioned why politicians receive multiple pensions and tax exemptions on their income, while ordinary citizens face an increased tax burden. These inequities have fueled demands for reforms at the national level. Despite Prime Minister Modi’s reputation for pushing bold reforms, there has been little action on the issue of multiple pensions and tax exemptions for politicians. Many argue that income and pension policies for politicians should be the same as those for the general public. Proposals for change include a single pension scheme for politicians, taxation parity to ensure their income is taxed in the same way as any other citizen, and regular transparency measures that would require politicians to disclose their income, assets and pensions. Such reforms would promote greater fairness, accountability and transparency in India’s political system, ensuring that elected representatives are treated in a manner that is befitting the public they serve.
Arvind Sharma is an award winning bi-lingual journalist with more than 20 years of experience.
He has worked with Divya Himachal, Dainik Jagran, Dainik Bhasker, Vir Partap, Ajit and PTI.
In 2010, he was conferred the Himachal Kesri journalism award. He reports on the Tibetan Government in Exile, politics, sports, tourism and other topics. He lives in Dharamshala.
