Thursday, December 3, 2009

The Salary Theorem

Do the following situations look familiar?

Here's why...



Case Study: Indian Government Expenditure on MPs' Salaries

Salary & Govt. Concessions for a Member of Parliament (MP)

Monthly Salary: INR 12,000

Expense for Constitution per month: INR 10,000

Office expenditure per month: INR 14,000

Traveling concession (Rs. 8 per km): INR 48,000
(e.g. For a visit from Kerala to Delhi & return: 6000 km)

Daily DA TA during parliament meets: INR 500/day

Charge for 1 class (A/C) in train: Free
(For any number of times - All over India)

Charge for Business Class in flights: Free for 40 trips / year
(With wife or P.A.)

Rent for MP hostel at Delhi : Free

Electricity costs at home : Free up to 50,000 units

Local phone call charge : Free up to 1 ,70,000 calls.

TOTAL expense for a MP [having no qualification] per year : INR 32, 00,000
[ i.e. INR 2.66 lakh /month]

TOTAL expense for 5 years: INR 1, 60, 00,000

For 534 MPs, the expense for 5 years: nearly INR 855 cores

And the PM wants CEOs to Cut their salaries!

Note: This theorem does not hold good for CEOs

Quod Erat Demonstrandum