Govt wants to hike MPs’ funds, plan panel not keen

The government on Friday said it planned to increase the money spent annually by members of Parliament in their constituencies from Rs 2 crore to Rs 5 crore.

The government on Friday said it planned to increase the money spent annually by members of Parliament in their constituencies from Rs 2 crore to Rs 5 crore.

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The Planning Commission, however, is opposed to a hike in the money provided to MPs under the Members of Parliament Local Area Development (MPLAD) scheme.

Minister of State for Statistics and Programme Implementation Sriprakash Jaiswal said he has requested the Prime Minister’s Office to clear the proposal.

“At present, there are some fund constraints. The allocation of money under the MPLAD scheme would increase the moment these constraints go,” Jaiswal said. “We have requested the Prime Minister to increase the funds allocation under the MPLAD scheme.”

The Planning Commission has opposed increasing the fund allocations under the scheme, saying it would limit resources for other flagship schemes.

Admitting that there was misuse of funds and corruption in the scheme, Jaiswal said, “The latest report says it is the best scheme. I don’t say that there is no corruption or misuse of funds under the scheme.”

The report was commissioned by the National Bank for Agriculture and Rural Development Consultancy Services, a wholly-owned subsidiary of the National Bank for Agriculture and Rural Development (NABARD).