MPs to now decide on how to spend Rs 5 cr a year.
The Union government on Friday increased the Member of Parliament Local Area Development Scheme (MPLAD) fund from the existing Rs 2 crore a year to Rs 5 crore a year for each MP. This will involve an extra annual expenditure of Rs 2,370 crore, finance minister Pranab Mukherjee informed the Lok Sabha during his reply on the General Budget debate.
There was a long-pending demand from MPs across party lines to increase their local area development fund, as they found it inadequate to serve the vast constituency areas.
At the same time, the minister indicated the government would formulate tougher norms for the scheme. Many audit reports have shown a need to plug loopholes.
While the Left parties were critical of this increase and, instead, wanted to ende the scheme altogether, other MPs across party lines welcomed it. “If the same amount (Rs 2 crore) remained, the scheme should have been completely waived. It was not sufficient for any work in the constituency. But with Rs 5 crore as MPLAD, some work can be done in the constituency. Along with hike in the fund, the MPs will have enhanced responsibilities as well,” said Rajiv Pratap Rudy, spokesperson of the Bharatiya Janata Party.
MPs from election-bound Kerala, Tamil Nadu, West Bengal, Assam and Puducherry will, however, have to wait till the end of May to use the enhanced amount. The Election Commission had permitted Mukherjee to announce the rise in the Lok Sabha but with a rider that the poll-bound states could not avail this facility till the polls concluded.
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On the loopholes in usage of MPLAD money, Mukherjee noted the Comptroller and Auditor-General had given a report. “I am sure the Public Accounts Committee (of Parliament) will look into the report and come out with recommendations. We will consider those proposals to improve the scheme,” he said.
The Left parties had opposed the scheme at its inception in 1993 and also protested against the new increase. Basudeb Acharia, CPI(M) leader in the Lok Sabha, later said: “This scheme is against the spirit of the panchayati raj system. Why should an individual decide what is to be done for development in an area?”
Otherwise, the MPs were happy. “It will give an opportunity for many projects which are low in the priority of the district but useful for development of the area,” said BJP leader Murli Manohar Joshi. Also head of the PAC, he disagreed on the view that the scheme should be closed because of misuse. “There are instances of it being misused. But they are seen in every scheme. There is not a single scheme where there are no loopholes. It all depends upon the MPs and how they use it,” he said.
Telecom minister Kapil Sibal said, “There is no question of good or bad. The intent is certainly that we spread the benefit of the MPLAD scheme to the aam admi and I hope that objective is achieved.”