E-Paper
Opposition protests proposed changes on MPLADS utilisation
A proposed change in rules defining the utilisation of funds under the Member of Parliament Local Area Development Scheme (MPLADS) has elicited objections from opposition leaders.
A proposed change in rules defining the utilisation of funds under the Member of Parliament Local Area Development Scheme (MPLADS) has elicited objections from opposition leaders.
In letters issued by the Union ministries of statistics and programme implementation, and finance, the government has proposed that any interest accrued on the ₹5 crore annual funds that are allotted to each MP for their local area development scheme (MPLADS) has to be deposited back to the Centre.
“All interest earnings from the funds released for each central sector schemes, shall mandatorily be remitted back to the consolidated fund of India,” said the finance ministry note from March. The MPLADS division of the ministry of statistics reiterated this in a note released on April 11, seeking feedback from states and Union territories.
The grant of funds under the MPLADS scheme was suspended for nearly 19 months in the wake of the Covid-19 pandemic and it was restored by the cabinet in November last year.
While making the announcement about the restoration of MPLADS till financial year 2025-26, Union information and broadcasting minister Anurag Thakur had said the Centre was bringing it back “in view of the improvement in economic scenario, the way economic recovery has taken place and we have seen growth in various sectors as well, a decision has been taken to restore the MPLAD scheme for the remainder of the fiscal 2021-22”.
Under the scheme, MPs receive ₹5 crore each year in two instalments of ₹2.5 crore each. Funds under MPLADS are non-lapsable. Lok Sabha MPs have to recommend the district authorities projects in their Lok Sabha constituencies, while Rajya Sabha MPs have to spend it in the state that has elected them to the House. Nominated members of both the Houses can recommend works anywhere in the country.
Reacting to the proposed change, Communist Party of India (Marxist) Rajya Sabha member John Brittas on Monday shot off a letter to finance minister Nirmala Sitharaman. In the letter, Brittas cited the 2016 rules that are prevalent at present, saying “interest accrued on the funds released under the MPLAD scheme to the district authority is to be used for permissible works recommended by the MP concerned...Hence the bypassing of the same...cannot be greeted with applause.”
Trinamool Congress MP Jawahar Sircar said: “It is a terribly mechanical and unimaginative drafting of the finance ministry’s revised procedure for flow of funds under central sector schemes to a quite-unique MPLAD scheme. The order that releases will be ‘just in time’ and on completion of rigorous paperwork means, in effect, that fund flow will necessarily be choked until unavoidable. A small building for (say) the most needy may take 4 or 5 stuttered phases of work for funds to reach and work be completed— with long gaps of idleness in between.’’
When asked, two central government officials, requesting anonymity, said the changes proposed are aimed at timely and efficient utilisation of funds. “As ministry of statistics and programme implementation is the nodal ministry and is responsible for policy formulation, it will take a final call on release of funds and monitoring the implementation of the scheme.”
