The Members of Parliament Local Area Development Scheme (MPLADS) enables MPs to suggest development projects in their constituencies. They can suggest projects like roads, bridges, schools, hospitals, and community centres.
What is the MPLAD Scheme?
The Members of Parliament Local Area Development MPLAD Scheme is an initiative introduced by the Indian Government on December 23, 1993. It allows Members of Parliament (MPs) to propose and support developmental projects in their respective constituencies, prioritising the creation of long-lasting community assets based on locally identified needs. The annual spending limit for each MP is ₹ 5 crores.
Issues Related to MPLAD Scheme
Inefficient Utilisation of Funds:
The utilisation of MPLADS funds varies significantly across different constituencies. According to a report by IndiaSpend, 508 MPs (93.55%) did not fully utilise the MPLADS amount from 2014 to December 2018, spanning 4 years and 7 months. Only 35 MPs from the Lok Sabha utilised the entire MPLADS amount during this period, indicating a haphazard use of funds and a substantial portion left unspent.
Implementation Shortcomings:
Instances of financial mismanagement and artificially inflated expenditure have been flagged by the Comptroller and Auditor-General of India (CAG). The CAG’s observations reveal cases where the actual expenditure by executing agencies was lower than the recorded amounts, indicating implementation lapses.
Weakening of Panchayati Raj System:
MPLADS encroaches upon the authority of local self-governing institutions, thus violating Part IX and IX-A of the Constitution.
Against the Doctrine of Separation of Powers:
Criticism has been directed at the MPLADS scheme for conflicting with the separation of powers, as it allows individual legislators to interfere with planning and implementation duties that fall under the purview of the executive. The 2nd Administrative Reforms Commission (ARC) recommended the complete abolition of the scheme, highlighting the issues of legislators assuming executive responsibilities.
Lack of Statutory Backing:
The MPLADS scheme lacks governance through statutory law, leaving it subject to the discretion of the ruling government without a solid legal foundation.
Insufficient Creation of New Assets:
According to the CAG, a significant proportion (78%) of the works recommended under the MPLADS scheme were for improving existing assets, contrary to the scheme’s objective of primarily focusing on asset creation.
Poor Quality of Work:
The CAG’s 2019-20 report highlighted instances of substandard works and excessive payments due to the use of lesser quantities of materials than specified by contractors in MPLADS projects.
Lack of Accountability for MPs:
There is a lack of accountability regarding the quality and quantity of work executed against the specified requirements.
Delays in Issuing Work Orders:
The CAG’s 2019-20 report revealed delays ranging from 5 to 387 days in issuing work orders for 57% of the works, despite the requirement of issuing them within 45 days of the MP’s recommendation.
Improper Registration of Assets:
The required register of assets created under the MPLADS scheme has not been maintained, making it difficult to verify the location and existence of assets.
Lack of Awareness and Inadequate Information Among MPs:
Both Rajya Sabha and Lok Sabha MPs have recommended similar works in the same district, leading to a disproportionately large amount of money flowing into one district.
Monitoring and Regulation:
While the scheme aimed to promote participatory development, there is no available indicator to measure the level of participation.
Corruption:
Instances of MPLADS funds being used to favour specific contractors have been reported, with contractors often having personal connections or financial links with the MPs.
Criticism Regarding the Purpose of Introduction:
Allegations have been made that the scheme was introduced in 1993 to secure the support of MPs in coalition politics.
Constitutionality of the Scheme
In 2010, the Supreme Court (SC) faced a challenge regarding the MPLADS scheme, and a five-judge bench of the SC made the following determinations:
The Indian Constitution does not strictly adhere to the principle of separation of powers. While MPs are assigned an executive-like function, their role is limited to ‘recommending’ works, and the actual implementation is carried out by local authorities. Thus, the scheme does not violate the separation of powers.
India’s Constitution has a quasi-federal nature. Article 282 states that both the Union and the State possess the power to grant funds for a purpose, regardless of whether the subject matter falls within the purview of the Seventh Schedule. However, the purpose must qualify as a ‘public purpose’ as defined by the Constitution.
The MPLADS scheme falls within the definition of ‘public purpose’ as it aims to contribute to the development and welfare of the State, in line with the principles outlined in the Directive Principles of State Policy.
Furthermore, the MPLADS scheme is subject to robust accountability mechanisms as it falls under the purview of the Right to Information (RTI) Act.
Implementation of MPLAD scheme
- MPLADS was announced by the late Prime Minister Shri. P.V Narsimha Rao in December 1993 and has continued with the support of successive governments.
- The initial fund allocation for each MP was ₹ 5 lakhs in 1993-94, which increased to ₹ 2 crores in 1998-99 and further revised to ₹ 5 crores in 2011-12.
- The Ministry of Statistics and Programme Implementation (MoSPI) administers the MPLADS and publishes an annual report on program operations, providing details on completed work and projects undertaken by each Lok Sabha MP.
- The annual report helps evaluate the utilisation of MPLADS funds by MPs and assess the overall progress under the scheme.
- During the peak of the Covid pandemic, the central government temporarily suspended MPLADS to redirect funds to priority sectors like vaccine development and health infrastructure.
Features of MPLAD Scheme
- MPLADS is a plan scheme sponsored by the central government, and the funds are released as grants directly to district authorities.
- The purpose of MPLADS funds is to create durable assets for the community, including educational infrastructure, healthcare facilities, water supply systems, transportation, sanitation, and electrification.
- A specified portion of each MP’s funds should be utilised for the benefit of Scheduled Caste and Scheduled Tribes populations.
- Upon the MP’s recommendation, the feasibility of projects is assessed by the district authority or a district-level officer, who then appoints an implementer. Implementation of MPLADS projects is typically carried out by a local government body or a reputable NGO.
- The district authority is required to inspect a minimum of 10% of all ongoing works each year.
- The annual MPLADS funds of ₹ 5 crores are released in two instalments of ₹ 2.5 crores each.
- MPLADS funds are non-lapsable, meaning any unused funds can be carried forward to subsequent years, allowing MPs to spend them later.
- MPLADS funds can be converged with the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS) and the National Program for the Development of Sports.
- Citizens have the right to access information on any aspect of MPLADS and the ongoing projects under it, as per the provisions of the Right to Information Act of 2005.
Challenges With MPLAD Scheme
Insufficient citizen engagement: Despite the aim of MPLADS to promote decentralised and participatory development, citizen participation has been inadequate, and there is a lack of information regarding how locally identified needs were given priority.
Lack of effective monitoring of approved projects: Although guidelines mandate that district authorities should monitor approved projects, there is no specific mechanism or indicator for monitoring. The annual reports also fail to provide insights into the monitoring process. Additionally, there is no indication of monitoring the condition of assets after project completion.
Tendency to exploit MPLADS for political advantage: Research data suggests that MPs often exhibit a slower pace of utilising MPLADS funds during the initial half of their term. However, a majority of the funds are spent in the last year before elections, indicating a tendency to gain political mileage.
Conclusion
Since its establishment in 1993, the MPLADS scheme has expanded its scope as MPs utilise it to fulfil the specific requirements of their local communities. Despite the challenges that have arisen over time, the MPLADS scheme has proven effective in addressing the developmental needs of constituencies and enabling MPs to contribute to government-led projects. It serves as an opportunity for elected representatives to enhance the impact of development initiatives by addressing time-sensitive or urgent community needs. Despite occasional difficulties, MPLADS remains a valuable development initiative that equips elected representatives with funds to address urgent local community needs and bridge crucial developmental gaps.
FAQs
What is the current fund allocation under MPLADS?
Each Member of Parliament (MP) is allocated ₹ 5 crores annually under the MPLADS. These funds are administered in accordance with periodically issued and updated guidelines.
Who sanctions MPLADS projects?
Upon the recommendation of the local Member of Parliament, the District Authority approves a specific project.
What is MPLADS and when was the scheme launched?
MPLADS is an acronym for the Members of Parliament Local Area Development Scheme, which is a constituency development scheme implemented by the central government.
What is the purpose of MPLAD?
The Members of Parliament Local Area Development Scheme (MPLAD) is a scheme of the Government of India that provides funds to Members of Parliament (MPs) to develop their constituencies. The funds can be used for a variety of purposes, such as the construction of roads, schools, hospitals, and other public infrastructure.
How much is the MPLAD fund per year?
The MPLAD fund per year is Rs. 5 crore per MP.
What is the MPLAD Scheme 2023?
The MPLAD Scheme 2023 is a revised version of the MPLAD Scheme that was launched in 1993. The revised scheme includes several new features, such as a focus on sustainable development and a greater role for community participation.
How much is MP Lad fund per year?
The MP Lad fund per year is Rs. 5 crore per MP.
What is the salary of MP in India?
The salary of an MP in India is Rs. 1 lakh per month.
Who implements MPLAD?
The MPLAD Scheme is implemented by the District Level Committee (DLC), which is headed by the District Collector. The DLC is responsible for the selection, execution, and monitoring of MPLAD projects.
When did the MP pension start in India?
The MP pension scheme was started in India in 1996.
How many MPs are there in Tamilnadu?
There are 40 MPs in Tamil Nadu.
How many Sansads are there in India?
There are 543 MPs in India.
How much is MLA Nidhi per year?
The MLA Nidhi per year is Rs. 5 crore per MLA.
What is the pension scale for MP?
The pension scale for MPs is as follows:
● Basic pension: Rs. 50,000 per month
● Dearness allowance: 125% of basic pension
● House rent allowance: 15% of basic pension
● Medical allowance: Rs. 10,000 per month
● Constituency allowance: Rs. 10,000 per month
What is the amount of MLA party fund?
The amount of MLA party fund is Rs. 5 crore per MLA.
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