Recently, the funds from Members of Parliament Local Area Development Scheme (MPLADS) were disbursed to the village panchayats of Goa. At the moment these funds are being utilized and are meant to create assets that will improve the lives of people in those villages. But due to Covid-19 pandemic MPLAD Funds Scheme is currently suspended and the disbursed funds were allocated earlier.
MPLAD is a central government scheme, under which MPs can recommend development programmes involving spending of Rs 5 crore every year in their respective constituencies. MPs from both Lok Sabha and Rajya Sabha, including nominated ones, can do so.
Initially, it came under the control of the Ministry of Rural Development. Later, in October 1994, it was transferred to the Ministry of Statistics and Programme Implementation.
Suspension of the MPLAD Scheme will make Rs 7,800 crore available to the government. For comparison, this is only 4.5% of the Rs 1.70 lakh crore relief package for the poor announced under the Pradhan Mantri Garib Kalyan Yojana.
MPs and MLAs do not receive any money under these schemes. The government transfers it directly to the respective local authorities.
The legislators can only recommend works in their constituencies based on a set of guidelines. For the MPLAD Scheme, 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. For example, last month, the government allowed use of MPLAD funds for the purchase of personal protection equipment, coronavirus testing kits etc.
The guidelines for use of MLALAD funds differ across states. For example, Delhi MLAs can recommend the operation of fogging machines (to contain dengue mosquitoes), installation of CCTV cameras etc.
After the legislators give the list of developmental works, they are executed by the district authorities as per the governments financial, technical and administrative rules.
Prime Minister P V Narasimha Rao announced the scheme on December 23, 1993 in Lok Sabha. He mentioned that it was being started at the request of MPs across parties. Opposition to the proposal came from CPI(M) MPs Nirmal Kanti Chatterjee and Somnath Chatterjee.
The Member of Parliament Local Area Development Scheme (MPLADS), a programme in which each Lok Sabha and Rajya Sabha member can recommend works for development in his/her constituency, has often met with much criticism. The major causes of criticism of the Scheme are-
Implementation Lapses: The Comptroller and Auditor-General of India (CAG) has flagged instances of financial mismanagement and artificial inflation of amounts spent in the implementation of the Members of Parliament Local Area Development Scheme (MPLADS).
No Statutory Backing: The scheme is not governed by any statutory law and is subject to the whims and fancies of the government of the day, there is hardly any transparency involved in its operation.
Monitoring and Regulation: The MPLAD scheme was launched with an objective to promote participatory development involving people's participation at the grassroots level. Since it is a demand-driven scheme, it is important that there are indicators to measure the level of participation in the scheme. There must also be monitoring and regulation mechanisms in place to see how it all works.
Breach of Federalism: MPLADS encroaches upon the domain of local self governing institutions and thereby violates Part IX and IX-A of the Constitution.
Conflict with Doctrine of Separation of Powers: MPs have been indirectly criticized for using MPLAD Scheme. The criticism has been in respect of conflict with the Doctrine of Separation of Powers. Under the law, MPs have many powers which are legislative or quasi-legislative in nature. They have power over executive functions under the Constitution. The Supreme Court and various High Courts have held that this authority vests on MPs to oversee the functioning of Schemes framed by the Central Government.