The utilisation of funds under the Member of Parliament Local Area Development Scheme (MPLADS) has improved from 55 per cent in 1997 to 64 per cent in 2000. However, 46 per cent of the total amount remained unspent in the period between 1993-94 and 1998-99, according to an evaluation report conducted by the Programme Evaluation Organisation.
Delhi had the highest percentage of unspent balance (calculated as the actual amount not spent plus the interest accrued on it) at 76.91 per cent, followed by Chandigarh, where the figure was 76.04 per cent. Karnataka was third with unspent balance at 73.48 per cent, followed by Punjab where the figure was 66.22 per cent.
Arunachal Pradesh had the lowest percentage of unspent balances at 14.27 per cent, followed by Tamil Nadu with 20.25 per cent. Uttar Pradesh, with 23.78 per cent of the unspent balance, was third on the list.
The study was based on a sample covering 92 Lok Sabha and 25 Rajya Sabha MPs and covers the period between 1993-94 - when the scheme was launched - and 1998-99. The current guidelines for the scheme specify that funds released under the scheme are non-lapsable. If funds released in a particular year remain utilised, they can be carried forward to the subsequent year without detracting from the allocation of Rs 2 crore per year per constituency.
However, the funds have to be released on the basis of the actual progress in expenditure and execution of works. The idea is that at any given time, no excessive money should remain outside the government treasury than is reasonably expected to be spent within a year.
The guidelines, however, do not specify as to which authority will ensure compliance and fix the accountability.
