Government sources said the Cabinet was of the view that since the term of the present Lok Sabha was almost coming to an end, it was prudent to leave the matter to the new Lok Sabha.

The Cabinet was expected to take a view on the setting up of a commission to determine salaries, allowances and perks of the MPs.

The proposal, coming close on the heels of the report of the Sixth Pay Commission for Central government employees, was aimed at amending the Salary, Allowances and Pensions of MPs Act 1954, and paving the way for establishing a permanent mechanism for the purpose.

Such an institutional mechanism would have insulated MPs from facing criticism for fixing their own salaries and allowances.

The proposal was mooted in August 2006 when their salaries and allowances were raised amid opposition from Left parties. Lok Sabha Speaker Somnath Chatterjee had also suggested an independent mechanism.