Members of Parliament are all set to get two and a half times more funds under the Local Area Development (MPLAD) scheme, but the government auditor has found that they are not spending the full amount even under the existing arrangement.
Whenever elections approach, the expenditures under the scheme showed a propensity to increase, while during the intermediary period, these tended to accumulate, said a report by the Comptroller and Auditor General (CAG) tabled in Parliament on Friday.
As much as Rs 1,788 crore remained unspent as on March 31, 2009, under the scheme, which enables the elected representatives meet people’s needs in their constituencies, said a report by the Comptroller and Auditor General (CAG) tabled in Parliament on Friday. Between 2004-05 and 2008-09, Rs 7,245.95 crore had been released and Rs 9,836.53 crore was available with various district authorities, but expenditure of Rs 8,048.53 crore had been incurred, leaving an unspent balance of Rs 1,788 crore by the end of 2008-09, said the report.
The report said the utilisation of funds ranged between 37.43 per cent and 52.44 per cent of the funds available with the district authorities during the last five years (2004-09), leaving substantial closing balances in various bank accounts outside consolidated fund of the Union or states.
There is no surprise that the increase in local area funds from the present Rs 2 crore a year to Rs 5 crore for each MP has been proposed ahead of Assembly elections in Assam, West Bengal, Kerala, Tamil Nadu and the Union Territory of Puducherry in April-May. However, Finance Minister Pranab Mukherjee made it sure that at least this increase would not be made available to the MPs from these areas till polls were over.
“MPs from these states and UT will not be able to utilise the enhanced allocation or make commitments against this enhanced allocation till the entire election process is over,” he said while proposing the increased outlay for the scheme.
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The increased outlay under the scheme will result in additional allocation of Rs 2,370 crore per year.
CAG also found that the scheme does not ensure participation of various groups in a constituency like active resident forums, local bodies and non-government organisations.
Besides, the scheme is not being executed on the basis of the principles laid. CAG found that in sampled districts of eight states, district authorities executed 700 works costing Rs 9.45 crore without receiving any recommendations from the MPs concerned.