What is MPLAD Scheme?

• IAS NEXT, Lucknow
• 12, Nov 2021

Reference News:

Citing economic recovery, the Union Cabinet has restored the Members of Parliament Local Area Development Scheme (MPLADS) that was suspended in April 2020 subsuming the funds for the scheme in the consolidated fund of India. However, the MPs will get ₹2 crore instead of the annual approved ₹5 crore.

Background:

The government had in April, 2020 decided not to operate MPLADS for the Financial Years 2020-21 and 2021-22; and place the MPLADS funds for these two-years at the disposal of the Ministry of Finance to meet the emergent needs of people.

• From ₹5,012 crore spent during 2018-19, an expenditure of just ₹2,491.45 crore was taken up under the scheme in 2019-20.

How was this fund utilised?

The government has said that the funds saved from the MPLAD Scheme have been utilised to enhance the allocation of funds for improving health infrastructure, provide free ration under PM Garib Kalyan Yojana, and free vaccination for the people.

About MPLAD scheme:

• Launched in December, 1993.
• Seeks to provide a mechanism for the Members of Parliament to recommend works of developmental nature for creation of durable community assets and for provision of basic facilities including community infrastructure, based on locally felt needs.
• The MPLADS is a Plan Scheme fully funded by Government of India.
• The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.

Special focus:

• MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by S.T. population.

Release of Funds:

• Funds are released in the form of grants in-aid directly to the district authorities.
• The funds released under the scheme are non-lapsable.
• The liability of funds not released in a particular year is carried forward to the subsequent years, subject to eligibility.
• The MPs have a recommendatory role under the scheme.
• The district authority is empowered to examine the eligibility of works, sanction funds and select the implementing agencies, prioritise works, supervise overall execution, and monitor the scheme at the ground level.
• At least 10% of the projects under implementation in the district are to be inspected every year by the district authority.

Recommendation of works:

• The Lok Sabha Members can recommend works in their respective constituencies.
• The elected members of the Rajya Sabha can recommend works anywhere in the state from which they are elected.
• Nominated members of the Lok Sabha and Rajya Sabha may select works for implementation anywhere in the country.