The Kejriwal government had last month proposed a 250 per cent hike in MLA Local Area Development (LAD) fund in this financial year, increasing it to Rs 14 crore from the current amount of Rs four crore.
The Urban Development Department had sent the proposal to the Lt Governor for prior approval, but he has sent it back, raising questions over the proposal, a senior government official said.
Following Jung's directions, the Urban Development Department will write to its counterparts in all states seeking MLA-LAD fund details.
In 2011, the Sheila Dikshit government had increased MLA-LAD fund for each legislator from Rs 2 crore to Rs 4 crore for carrying out development works in their respective constituencies.
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