The Maharashtra Cabinet has decided to cut the salaries and allowances of ministers by 50 per cent, Chief Minister Sushilkumar Shinde said in Mumbai on Wednesday.

In view of the precarious financial condition of the state, the chief minister said he would also reduce his office staff by 22 from the existing 127.

The cut in the salaries and allowances will result in savings of Rs7.5 million per month, Shinde said.

The decision comes in the wake of criticism over the induction of a jumbo Cabinet of 69 ministers, which will result in an expenditure of Rs15 million per month on salaries and allowances.

Shinde said in 2000-2001, Rs94.5 million had been spent on salaries and allowances of the ministers. The corresponding figure in 2001-2002 was Rs82 million and the proposed expenditure on this count in 2002-2003 will be Rs105.6 million, he said.