Odisha is India’s best-kept secret in many respects. It has been a forerunner in several innovative managerial practices. From implementing power sector reforms to handling natural disasters, Odisha has repeatedly set benchmarks for other states. Odisha’s decision to sponsor the national hockey team demonstrated visionary leadership.
However, in the recent past, the Government of Odisha found itself on the wrong footing due to its decision to increase the salaries of MLAs. At a time, when teachers are on the streets demanding pay hikes and regular service benefits, youth are asking for jobs, intellectuals are raising questions about vacant teaching positions in colleges and universities, and people in general are unhappy with the rising cost of living, the recent threefold hike in MLA salaries has raised several eyebrows. The increase raises fundamental questions about accountability and the priority-setting ability of the sitting members of the Legislative Assembly.
Odisha MLA Salary Hike: What Has Changed?
The Odisha Assembly increased the monthly package of MLAs from around Rs 1.11 lakh to Rs 3.45 lakh. The Parliamentary Affairs Minister confirmed that the hike received full support from all members cutting across parties. The hike was also given retrospective effect from June 2024. This retrospective effect will result in legislators receiving huge arrears running into crores of rupees. The bill also includes a provision to revise salaries, allowances, and pensions every five years through an ordinance, without the need for a new bill.
With this threefold increase, Odisha has become one of the highest-paying states for public representatives. Members defended the rise in the salary calling it as necessary revision to meet the increased responsibilities and the changed economic conditions. The only exception was the CPM legislator Laxman Munda, who opposed the hike. Subsequently, former Chief Minister Shri Naveen Patnaik also stated that he would not accept the hiked salary and allowances.
Legal but Not Prudent
The remuneration of Members of Parliament is fixed by central legislation. However, state assemblies have the freedom to determine the salaries of their members. Moreover, there is no requirement for public consultation before any pay revision. So the Government of Odisha’s decision to increase salaries does not violate any law. However, public uproar and critical commentary on this decision convey the message that prudence is as important as legality in a democratic society. The hefty increase in salary, though legal, is far from prudent.
Creating Citizen Centric Compensation
It is encouraging that MLAs from the treasury bench urged the Chief Minister to review the salary hike. Since states enjoy constitutional freedom to set MLA salaries, Odisha should pioneer a system that ties remuneration directly to citizen engagement and developmental outcomes. This would provide an opportunity to the state to involve citizen in evaluating the performance of legislators. It is hoped that the Chief Minister will use this opportunity not only to review the policy but also to revise it in the larger interest of the people of Odisha. Who knows, Odisha may set another example for other states to follow.
Constituency-Level Budget as the Anchor
Each constituency should prepare a five-year development budget, revised annually, outlining priority projects, milestones, and financial allocations. The MLA’s salary should be a transparent component of this budget, linking remuneration directly to constituency needs and measurable outcomes.
Citizen Participation in Salary Determination
Let the government of Odisha make the legislators’ salaries a function of actual performance. Citizens should review the performance of the elected leaders and provide feedback on the reasonableness of compensation. This would ensure that remuneration is aligned with public expectations, thereby developing a social contract between elected representatives and citizens. Let the new model empower the people to decide the actual remuneration their elected leaders will get. “Perform and earn” should become the governing principle in fixing the salaries of the elected leaders.
Transparency Through Dashboards and Bulletins
Constituency-level digital dashboards should track budget utilization, project progress, MLA attendance, and grievance redressal. A quarterly performance report, in both print and digital formats, should be made available to citizens of the constituency, with a provision for their feedback. Regular sharing of information, using technology, with the citizens would foster accountability, visibility, and continuous public oversight.
Conclusion: Creating Citizen Centric Compensation
The government’s decision to increase salaries, though not illegal, has raised serious questions regarding autonomy and accountability. If reversing such decision is not possible, innovation should be introduced to make elected representatives more accountable to the people. For compensation to be seen as legitimate, it should align with public service, transparency, and social priorities.
By adopting a citizen-driven model, Odisha would be sending a positive signal to other states by making the salaries of elected leaders directly dependent on citizens’ audit of their performance.
The government has the right to raise salaries, but people should have a say in when and how their elected representatives receive that money. After all, it is people’s money.
I would like to end this note in the spirit of Kahlil Gibran:
And what is the judge but the slave of the judged?
And what is the ruler but the slave of the ruled?”
*Prof. Ramana is teaching at the Xavier Institute of Management ( part of XIM deemed university), Bhubaneswar and he is also known as a newspaper columnist.
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