Development Funds for MPs

Development Funds for MPs
By Dr Arvind Kumar

Recent decision of the UPA government to raise the corpus for Member of Parliament’s Local Area Development Scheme (MPLADS) from Rs 2 crore to Rs 5 crore has evoked mixed reactions from the media and experts. The MPLADS has been criticized by a major segment of experts for its various conceptual flaws and the manner in which it has been executed over the years. The official decision for the hefty raise goes against the objections made by the Planning Commission. This decision, becoming effective from 1 April this year, will cost the state exchequer an additional expenditure of Rs 2,370 crore a year. Broadly speaking, the MPs have been demanding an increase in the corpus since 1999 on the ground that Rs 2 crore was not enough to undertake worthwhile projects in their respective constituencies. The scheme, introduced in 1993 with a budget of Rs 5 lakh for each MP, was raised to Rs 1 crore in 1994 and then to Rs 2 crore in 1998.

While questioning the constitutional validity of the scheme, some experts have suggested for its abolition on the ground that it obscured the delineation between the executive and the legislature. However, the Hon’ble Supreme Court on 6 May 2010 ruled that the scheme was not violative of the principle of separation of powers because MPs could only recommend projects and it was the district administration, municipalities or panchayats that implemented them. The government kept modifying the guidelines of the scheme from time to time and introduced measures to ensure transparency, accountability and effectiveness. In view of plethora of reports about irregularities in the implementation of MPLADS, the Government and the MPs should come clean over such reports and account for every rupee.