U. P. govt releases second instalment of Vidhayak Nidhi, wait for hike gets longer
Uttar Pradesh’s legislators may have to wait for some more time to get an increase in Local Area Development Fund (Vidhayak Nidhi) from ₹3 crore to ₹5 crore (per MLA/MLC) as per the announcement made in the state assembly here on May 31, 2022
Uttar Pradesh’s legislators may have to wait for some more time to get an increase in Local Area Development Fund (Vidhayak Nidhi) from ₹3 crore to ₹5 crore (per MLA/MLC) as per the announcement made in the state assembly here on May 31, 2022.

Chief minister Yogi Adityanath had made an announcement to increase the Vidhayak Nidhi from ₹3 crore to ₹5 crore in the state assembly when BSP leader Uma Shankar Singh raised the issue in house on the last day of the budget session convened to get legislature’s nod to the annual budget for 2022-2023.
Yogi had raised the amount of Vidhayak Nidhi from ₹2 crore to ₹3 crore during his previous tenure (2017-2022) as the chief minister of Uttar Pradesh.
The focus shifted to the announcement when the state government released second instalment of ₹1.5 crore of Vidhayak Nidhi vide an order dated October 19, 2022. The state government had released the first instalment of an equivalent amount earlier on June 28, 2022 and legislators hoped the second instalment, when released, would include the increased amount.
“Yes, the state government may take some time in implementing the announcement to increase the amount of Vidhayak Nidhi. As of now, two instalments, each amounting to ₹1.5 crore, have been released,” said Samajwadi Party MLA and former minister Manoj Kumar Pandey. Congress Legislature Party leader Aradhana Mishra ‘Mona’ echoed the same sentiments. Most of other legislators, when contacted, also had same views.
Minister for parliamentary affairs Suresh Khanna was not available for comments. A senior officer of rural development department, however, confirmed that the state government was yet to issue any order to increase the amount of Vidhayak Nidhi. “We have released the second instalment as per the existing provisions,” said the officer.
The state government has made a provision of ₹1,512 crore for this in the annual budget for 2022-2023. The state legislative assembly has the strength of 403 MLAs while the state legislative council has 100 members. The state assembly has a seat vacant while six seats are vacant in the state legislative council. The state government has, therefore, released a sum of ₹744 crore (including GST) for second instalment of Vidhayak Nidhi for 496 legislators.
Meanwhile, there are indications that the amount allocated to the legislators in the financial year has not been used. About 50 percent of the amount of Vidhayak Nidhi allocated was reportedly used in the last financial year. About the use of Vidhayak Nidhi in current financial year, another senior officer said, “We are not sure about the amount of Vidhayak Nidhi used this year. A large chunk of the previous year’s Vidhayak Nidhi too has been used this year and final estimates may be only available at the end of 2022-2023,” said the officer.
“Most legislators use most of their funds by making recommendations. It is for the respective district teams to use the amount,” said a legislator.
ABOUT THE AUTHORUmesh RaghuvanshiUmesh Raghuvanshi is a journalist with over three decade experience. He covers politics, finance, environment and social issues. He has covered all assembly and parliament elections in Uttar Pradesh since 1984.Read More

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