MPLAD Scheme Suspended for a Year

April 27, 2020, The Liberacy:- MPLAD (Member of Parliament Local Area Development) Scheme was suspended for a year. The decision was taken by the center looking at the economic crisis, because of the Covid19 outbreak, which remains inevitable.

MPLAD and MLALAD schemes are development schemes. There are funds provided to every MP or MLA from Centre or State respectively for development work in their constituency.
MLALAD (Member of Legislative Assembly Local Area Development) Scheme, was also created on the basis of MPLAD for States and its MLAs.
Funds of MPLAD Scheme can be used only on Durables, i.e. Roads, School, Electricity, etc.
However, funds of MLALAD can be used on aspects defined by states differently on their own. Hence, they have a wide variation.

MPLAD Scheme Suspended for a Year
MPLAD Scheme Suspended for a Year

How Much Money is provided for MPLAD and MLALAD?

MPLAD Scheme is provided with a fund of ₹5 crores each year. Whereas, MLALAD Scheme funds vary depending on the State Government.

Delhi Government provides a fund of ₹10 crores to its MLAs, it is highest among all states. Kerala and Punjab follow the Central tract and provides a fund of ₹5 crores.
Assam, Chattisgarh, and Maharashtra provide a total amount of ₹2 crores to its representatives. Uttar Pradesh has recently increased MLALAD funds from ₹2 crores to ₹3 crores.

All the money provided in this scheme is transferred directly to the local authority. A representative can only recommend the work to be done.

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The Liberacy Newsletter (April 24, 2020)

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Suspension of the MPLAD Scheme for a year will benefit the Indian Government with ₹7800 Crores. This money will be an addition to ₹1.70 lakh crore relief package that was announced by the central government recently for the poor under Pradhan Mantri Garib Kalyan Yojana.

Uttar Pradesh Government has also suspended its MLALAD Scheme for a year, citing the funds required to curb the outbreak of the Covid19 pandemic.

The MPLAD Scheme was started in the year 1993, under the leadership of then Prime Minister P V Narsimha Rao. The scheme was initiated under a big political turmoil by it has successfully sustained for the last 27 years. Recently published data shows, that until the year 2017, a total of ₹45000 crores have been spent on various development works under this scheme. The majority of 82% of the money has been spent in rural India.

This scheme is often criticized for its contradictory nature, i.e. a legislature works as an executive. Corruption remained a secondary criticism for the MPLAD and MLALAD Schemes.

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