CIC wants break-up of how MPLADS funds are utilised

• Noting that Rs12,000 crore of the Members of Parliament Local Area Development Scheme (MPLADS) funds remains unspent, the Central Information Commission (CIC) has asked the Lok Sabha Speaker and the Rajya Sabha Chairman to come out with a legal framework to ensure its transparency and hold parliamentarians and political parties accountable for their obligations under the scheme.

About MPLAD:

• The MPLAD Scheme was started on December 23, 1993 by the late Prime Minister of P.V. Narasimha Rao. The main objectives of the MPLAD Scheme are to enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs of the peoples.
• Initially this scheme was under the the control of the Ministry of Rural Development but later on it was transferred to the Ministry of Statistics and Programme Implementation in October 1994.
• In 1993 when this Scheme was launched, an amount of Rs. 5 lakh per Member of Parliament was allotted which increased to rupees 1 crore per annum per MP constituency from 1994-95. Since FY 1998-99 this amount had been increased to Rs. 2 crore and currently Rs. 5 cr is allotted to each MP/year from the financial year 2011-12. So the MPLAD Scheme is a Plan Scheme fully funded by Government of India.
• The amount of this scheme is not transferred direct into the account of the Members of Parliament (MPs), but in the account of District Collector / District Magistrate / Deputy Commissioner or Nodal Officer of the concerned district in two installments of Rs. 2.5 crore each (before the commencement of the financial year). The MP directs the District Magistrate or the concerned authority that where to spend the money

Analysis:

• The Scheme enables the Members of Parliament to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies in the area of national priorities namely drinking water, education, public health, sanitation, roads etc. The Scheme is governed by a set of guidelines, which have been last revised in June, 2016.
• The entire population across the country stands to benefit through creation of durable assets of locally felt needs, namely drinking water, education, public health, sanitation and roads etc., under MPLAD Scheme.
• The MPLAD Scheme has resulted into creation of various durable community assets which have impacted the social, cultural and economic life of the local communities in one way or the other.

By: Vishal