MPLADS (MEMBER OF PARLIAMENT LOCAL AREA DEVELOPMENT SCHEME)

Objective:

It is to enable each Member of Parliament to recommend developmental works with emphasis on the creation of durable community assets based on the local needs of the people.

Features:

• • It is a central sector scheme, fully funded by government of India.
  • Initially, its administration was vested with Ministry of Rural Development. But since 1994 it has been with Ministry of statistics and Programme Implementation.
  • Each year, MPs receive fund of Rs. 5 crore in two equal installments of Rs. 2.5 crore each.
  • Of the work recommended every year, at least 15% of the total entitlement should be for areas inhabited by scheduled caste and 7.5% for areas inhabited by scheduled tribes.
  • The funds under MPLADS are non-lapsable.
  • The role of MP is limited to recommendation of the project under MPLADS.
  • Area of recommendation:
    • Lok Sabha MPs can recommend the project in their respective constituency.
    • Rajya Sabha MPs can recommend the project in the state they are elected from.
    • Nominated members can recommend the work anywhere in the country.
  • An elected can recommend the work anywhere in country, subject to two conditions:
    • Ceiling of Rs. 25 lakhs in a financial year per MP for all such recommendations, except in case of calamity.
    • In areas affected by natural calamities of severe nature, any MP can consent upto Rs. 1 crore of their annual fund for rehabilitation and reconstruction activities.
  • Interest accrued on annual fund is remitted to Consolidated Fund of India (CFI).
  • e-SAKSHI mobile application has been launched for revised fund flow procedure.
    • It aims to revolutionize the way MPs engage and manage development projects in their constituencies.
    • It provides convenience, assessability, and transparency thus fostering accountability and public trust in fund allocation and utilization.

Significance:

• • Increased spending on public infrastructure: MPs spend funds on development of public infrastructure as per the local needs. A recent study revealed that a whooping of 42.67% of the funds allocated to 3 Bengaluru MPs under MPLADS was spent on public infrastructure development, in the last 5 years.
  • It promotes more focused approach for solving local level problems by fostering community engagement and ownership.
  • Social welfare: it provides for implementation of projects for the welfare of marginalized communities due to compulsory provision of spending a fixed percentage of total funds for welfare of vulnerable sections.
  • The scheme plays a crucial role in complementing national development efforts and Promoting inclusive growth at grassroots level.

Issues:

• • Violate federalism: The scheme infringes upon the jurisdiction of local self-government, which is seen as violating Part IX & Part IX-A of the constitution.
  • Against the principle of separation of power: It goes against one of the underlying principles of our constitution by giving executive function to legislature.
  • Political Influence: The projects are chosen or prioritized based on political considerations rather than genuine developmental needs, leading to insufficient resource allocation. For example, MPs spending MPLADS funds on upgradation of bus shelters to gain public favor and visibility of their names.
  • Lack of long-term planning: The focus of MPLADS projects are mostly on short term gains or on visible infrastructure rather than long term sustainable development initiatives like problems related to pollution, ground water depletion etc.
  • Large share of unspent funds at the end of year like the share of unspent funds under MPLAD scheme at the end of the tenure of current Lok Sabha is nearly doubled to 16%, compared to the 16^th Lok Sabha.
  • Transparency and Accountability: there is lack of proper accountability mechanisms regarding utilization of funds. Also, there is no institutionalized mechanism for monitoring and evaluation of the funds spent under scheme.

Way forward

• • Involvement of PRIs and civil societies working at local level to promote collaborative governance.
  • Strengthening of state departments in terms of staff and infrastructure. Also, minister must be provided with expert assistance while making decision for project.
  • There should be a transparent mechanism for monitoring and evaluation of the funds spent under scheme like PFMS (Public Financial Management System), to ensure accountability of public funds.
  • Generating awareness among the citizens.