Starting with the recent newsworthy event in the state of Rajasthan, the government has given the green light to an initiative that will allocate Rs. 3 crore from each MLA’s Local Area Development (LAD) fund for Covid-19 vaccinations. The beneficiaries will be individuals ranging from 18 to 44 years old. To accommodate this expense, each legislator’s fund has been raised from Rs. 2.25 crore to Rs. 5 crore annually.
About the Members of Legislative Assembly Local Area Development (MLA-LAD) Scheme
This scheme mirrors a central government programme known as the Members of Parliament Local Area Development Scheme (MPLAD). The objective is to create infrastructure based on local needs, develop public assets, and bridge regional disparities in growth. Both rural and urban areas within a state can benefit from this scheme.
Importantly, MLAs themselves do not receive funds directly. Instead, the government disburses it to respective local authorities, and MLAs merely recommend projects in their constituencies per the guidelines. The allocated amount varies across states, with Delhi having the highest allocation of Rs. 10 crore per year. Guidelines for the utilization of MLA-LAD funds vary across states as well. For instance, Delhi MLAs can propose deploying fogging machines or installing CCTV cameras. Post-recommendation, the execution of development projects lies in the hands of district authorities, adhering to the government’s financial, administrative and technical rules.
Understanding the Members of Parliament Local Area Development Scheme (MPLAD)
The MPLAD is a Central Sector Scheme unveiled in December 1993. Initially, it was under the Ministry of Rural Development’s wing but later shifted to the Ministry of Statistics and Programme Implementation in October 1994. Every year, MPs are allocated Rs. 5 crore in two instalments of Rs. 2.5 crore.
Notably, the funds under MPLAD are non-lapsable. The scheme aims to empower MPs to propose developmental work that emphasizes creating durable community assets based on local needs within their Constituencies. Lok Sabha Members can recommend works specific to their constituencies, and elected Rajya Sabha Members can suggest works within their elected state. Nominated members from both houses can propose works anywhere in the country.
The primary areas of focus include drinking water, primary education, public health, sanitation, roads, etc. Since June 2016, MPLAD funds extended their reach to support initiatives such as the Swachh Bharat Abhiyan, Accessible India Campaign (Sugamya Bharat Abhiyan), rainwater harvesting, and Sansad Aadarsh Gram Yojana.
Due to the Covid-19 pandemic’s impact, the Union Cabinet decided to temporarily suspend MPLAD Funds for 2020-21 and 2021-22.
Criticism of the Development Schemes
Despite the evident potential benefits, these schemes have faced criticism on two main fronts. Firstly, they are viewed as incoherent with the Constitution’s spirit, seemingly merging legislative and executive roles. Secondly, there have been allegations of corruption linked to the allocation of works.
