Suspension of MPLAD Scheme

Why in news?

The Centre suspended the Member of Parliament Local Area Development (MPLAD) Scheme to use its funds for COVID-related efforts.

What is the MPLAD Scheme?

• MPLAD is a central government scheme.
• Prime Minister P V Narasimha Rao announced it in Lok Sabha (1993).
• Each MP can recommend development works involving spending of Rs 5 crore every year in their constituency.
• MPs from both Lok Sabha and Rajya Sabha can do so.
• Over the years, it was adopted and adapted by state governments.

How does the scheme work?

• MPs and MLAs do not receive any money under these schemes.
• The government transfers it directly to the respective local authorities.
• After the legislators give the list of developmental works, the district authorities as per the government rules execute them.

How can the legislators recommend the works?

• The legislators can recommend works in their constituencies based on a set of guidelines.
• The guidelines focus on the creation of durable community assets like roads, school buildings, etc.
• Recommendations for non-durable assets can be made only under limited circumstances.
• The guidelines for use of MLALAD funds differ across states.

How long are the schemes supposed to continue?

• The central scheme has continued uninterrupted for 27 years.
• It is budgeted through the finances of government.
• It will continue as long as the government is agreeable.
• In 2018, the Cabinet Committee on Economic Affairs approved the scheme until the term of 14th Finance Commission (March 31, 2020).

What has been the impact of the MPLAD scheme?

• Until 2017, nearly 19 lakh projects worth Rs 45,000 crore had been sanctioned under the MPLAD Scheme.
• Creation of durable assets of locally felt needs has positive impact on the local economy, social fabric and feasible environment.
• Further, 82% of the projects have been in rural areas and the remaining in urban/semi-urban areas.

What are the criticisms of the scheme?

• It is inconsistent with the Constitution as it co-opts legislators into executive functioning.
• The workload on MPs created by the scheme diverted their attention from holding the government accountable and other legislative work.
• The Second Administrative Reforms Commission (2007) recommended the discontinuation of this scheme.
• There is a claim of corruption associated with allocation of works.
• On many occasions, the Comptroller and Auditor General has highlighted gaps in implementation.

Source: The Indian Express