However Sandy Blair, chairman of the remuneration board, said the increased pay was necessary to help politicians deal with increased devolution in Wales.
Local authorities have the power to issue such bonds, and with increased devolution they should be encouraged to do so to fund flood defences and to reduce carbon emissions by improving energy efficiency in all the nation's 30 million buildings.
He writes: In Catalonia, Scotland and now Quebec, power is held by separatist parties that have little chance of winning a sovereignty referendum in the foreseeable future, but are instead using their electoral mandates to demand increasing devolution of power from the national government.
Labour is already committed to increasing devolution of powers over housing, transport and skills to English cities and regions but is now setting the amount of cash it would transfer from Whitehall to £30 billion over the course of five years.
"Maintaining the current large numbers of local authorities and increasing devolution of funds to schools will only exacerbate the situation".
But he said a "No" vote would not mean the status quo, and said the pro-Union parties would deliver increased devolution.
As it stands Scotland is being given the power to set its own income tax rates and bands - and Air Passenger Duty rates - under increased devolution proposals drawn up by the Smith Commission in the wake of the independence referendum last year.
With increased devolution of powers to Holyrood, many will want to address the so-called West Lothian question: is it fair that English MPs have no say on devolved issues in Scotland, but Scottish MPs at Westminster can still vote on the same issues as they affect England?
It's a sign of the increasing devolution of power to local levels in emerging democracies around the world and in other countries.
Deputy First Minister Sturgeon welcomed the prospect of increased devolution, but said a vote for independence was the only way to ensure greater powers for Scotland as "there [was] no guarantee that any new powers would be delivered in the event of a no vote".
