The Indian government has recently announced a “one-time exemption in furnishing of utilization certificate” for the first installment and release from audit certification for the second installment under the Members of Parliament Local Area Development (MPLAD) Scheme. This is only applicable for the fiscal year of 2020-21, specifically for those Parliament members who have chosen to contribute towards the fight against COVID-19.
Details of the Exemption
The recent announcement provides Members of Parliament (MPs) with an exemption intended to facilitate their contribution to the country’s battle with the pandemic. This follows a previous one-time dispensation under the MPLAD Scheme permitting MPs to utilize funds for acquiring medical testing and screening equipment for governmental hospitals and dispensaries amidst the ongoing health crisis. Every fiscal year, each MP receives Rs 5 crore in two installments under MPLADS—these funds are non-lapsable. The MPs of the Lok Sabha must recommend project proposals to district authorities in their respective constituencies, whereas Rajya Sabha MPs are required to allocate spending within the state that elected them. MPLADS rules permit an MP to donate a maximum of Rs 1 crore to a trust or public fund.
Understanding the Members of Parliament Local Area Development Scheme
Incepted in December 1993, the MPLAD Scheme initially fell under the purview of the Ministry of Rural Development. However, in October of the following year, it was transferred to the Ministry of Statistics and Programme Implementation. The first guidelines came into effect in February 1994, shedding light on the concept, implementation, and monitoring processes of the Scheme.
Objectives of the MPLADS
The overarching aim of this Scheme is to enable MPs to propose developmental works focusing on the creation of enduring community assets. This would be based on local needs identified in their respective constituencies. It is worth noting that elected Lok Sabha members can recommend projects within their constituencies, whereas Rajya Sabha members can propose works within the state from which they were elected. Interestingly, nominated representatives of both Houses are allowed to recommend works anywhere throughout the country.
Priority Areas and Allocation of MPLADS
The MPLADS is particularly interested in creating permanent assets in areas of national priority, such as drinking water, primary education, public health, sanitation, and roads. This Scheme falls under the Central Sector Scheme category. An annual MPLAD fund of ₹5 crore is allotted per MP constituency. This allocation ensures that development needs, as identified by MPs within their representation areas, can be addressed effectively and efficiently.