The AAP government has proposed a 250 per cent hike in MLA Local Area Development (LAD) funds for the current financial year, enhancing it to Rs 14 crore from the existing Rs 4 crore.
The proposed hike is to ensure that shortage of money doesn't affect development works being carried out through MLA LAD fund in colonies of the national capital.
The Kejriwal government has sent a proposal to the Centre to seek its prior approval, a senior government official said.
If the Central government gives its nod, the proposal will be tabled in the Cabinet and thereafter in the Delhi Assembly where the Aam Aadmi Party has an overwhelming majority with 67 MLAs.
In 2011, the Sheila Dikshit government had increased MLA LAD fund from Rs two crore to Rs 4 crore for carrying out development works in Delhi. However, the current proposed hike will only be for the ongoing financial year.
"Out of Rs 4 crore MLALAD fund, Rs one crore is allocated for executing works pertaining to Delhi Jal Board every year as per the rule. Rest of the funds are also fixed for some other works following which MLAs do not have more fund left to carry out development works in their constituencies.
"In view of this, government has proposed to provide one-time additional allocation of Rs 10 crore for each MLA in the current financial year," the official said.
The official also said that if the Centre gives its nod, the AAP government will allocate Rs 700 crore to all 70 legislators.
According to officials, Rs 280 crore meant for MLA Local Area Development (LAD) funds has been already disbursed by the AAP Government and this Rs 700 crore would be in addition to that.
If the government increases Rs 10 crore for each MLA, it would be perhaps the highest in the country.
The officer said that all three MCDs have "failed" in effectively carrying out development works for want of adequate funds.
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