Annual allocation of MPLADS raised by Rs 3 cr

1:10 AM in

Union cabinet Thursday enhanced the annual allocation to each MP under the Member of Parliament Local Area Development Scheme ( MPLADS) from Rs 2 crore to Rs 5 crore. The scheme launched in 1993-94 enables MPs to recommend work in their constituencies depending upon the local needs in the area of public welfare.

The enhancement, which will be applicable from the current financial year, involves a total annual expenditure of Rs 3,950 crore, an increase of Rs 2,370 crore from the earlier Rs 1,580 crore per annum.

The Cabinet also approved annual administrative expenses of 2% of the annual outlay under MPLAD Scheme to be given to the districts or states for proper implementation and monitoring of the scheme. This would be met within the outlay of Rs 5 crore for each MP every year.

Asked by reporters why the massive hike of Rs 3 crore was necessary, I&B minister Ambika Soni said the rise in prices was adversely affecting the scheme and the developmental projects.

Responding to a question, she allayed apprehensions regarding corruption and said the MPs have themselves resolved that they would closely monitor implementation of the projects they have recommended and there were several monitoring mechanisms at the state and local levels besides the RTI Act.