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                              poker table png,indiocasino,casino hotel in goa, Explained | The new rules for utilisation of funds under MPLADS

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                                          Revised norms state that all interest earnings will be deposited with the Consolidated Fund of 22bet deposit methods.

                                          Revised norms state that all interest earnings will be deposited with the Consolidated Fund of 22bet deposit methods. | Photo Credit: PTI FILE

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                                            1. The story so far: The central government recently revised rules governing the utilisation of funds under various central sector schemes (CCS), including the MP Local Area Development Scheme (MPLADS). According to the revised norms, interest accrued on the annual fund of Rs 5 crore allotted to each Member of Parliament for development works will have to be returned to the Centre.

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                                              1. To put it in simple terms, MPs will no longer be able to use interest accrued on MPLADS funds for development works since the revised procedure requires these earnings to be compulsorily remitted to the Consolidated Fund of 22bet deposit methods (CFI).

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                                                Fully funded by the Centre, the MPLAD scheme was launched in December 1993 by the then-Prime Minister P.V. Narasimha Rao to provide funds to MPs to facilitate developmental works in their constituencies. The scheme puts special focus on the development of areas with Scheduled Caste and Scheduled Tribe populations. MPs are to recommend works costing at least 15% of the annual MPLADS entitlement for areas inhabited by SC populations and 7.5% for areas with ST populations.

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                                                  The role of an MP is, however, limited to the recommendation of a project. The onus is on the district authority to sanction, execute and complete the recommended project within a particular timeframe.

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                                                  Initially, MPs were allotted Rs 5 lakh each to recommend works in their constituency. The annual entitlement was later hiked to Rs 1 crore in 1994-95 and further raised to Rs 2 crore in 1997-98. In 2011, the United Progressive Alliance (UPA) government announced another increase in the MPLADS fund — from Rs 2 crore to Rs 5 crore.

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                                                          The programme was temporarily suspended from April 2020 to November 2021, with the Centre saying that the funds were diverted to manage the Covid-19 pandemic. The Centre’s move to temporarily suspend the fund was widely criticised by the Opposition. The TMC termed the decision “whimsical” and “undemocratic”, while the Congress said the decision would undermine the role of an MP. Many Parliamentarians also wrote to the Prime Minister to seek restoration of the MPLADS funds.

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                                                                          In November 2021, the Centre restored the scheme because of an “improvement in the economic scenario,” saying that Rs 6,320 crore was saved due to its temporary suspension. MPs were given only Rs 2 crore for the remaining period of the fiscal year 2021-2022. The entire amount of Rs 5 crore will be disbursed from the next financial year, the Information & Broadcast Ministry said.

                                                                        1. Earlier this year, a Parliamentary committee urged the Centre to release Rs 5 crore in advance to each MP for the fiscal year 2023-24, to complete projects and pending requests.

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                                                                              MPs across party lines have made regular demands for a raise in the annual entitlement under the MPLAD scheme.

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                                                                                        The Ministry of Statistics and Programme Implementation (MoSPI) is responsible for the release of funds, policy formulation and prescribing monitoring mechanisms for the implementation of the MPLAD scheme. As per the ministry’s 2016 document titled ‘Guidelines on Members of Parliament Local Area Development Scheme (MPLADS)’, all Lok Sabha or Rajya Sabha MPs (including nominated members) can recommend development projects to the district authority concerned in their nodal district. 

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                                                                                                1. According to the guidelines, all Lok Sabha members have to select a district as the nodal district. In case there are multiple districts in the constituency, funds are released to the nodal district authority, which then transfers funds to other districts. A Rajya Sabha MP can recommend projects in more than one district in the State from where he/she was elected. Nominated members, meanwhile, can select one or more districts from any one State.

                                                                                                  1. In case an elected MP wishes to contribute MPLADS funds outside the constituency or the State/UT, they can recommend work up to Rs 25 lakh in a financial year.