Norms Relaxed under Members of Parliament Local Area Development Scheme

The government has provided for “one-time exemption in furnishing of utilization certificate” for release of the first instalment, and exemption from furnishing of audit certificate for release of the second instalment under the Members of Parliament Local Area Development (MPLAD) Scheme. This exemption is applicable only for the financial year 2020-21. The exemption is for the Members of Parliament (MPs) who have decided to contribute for COVID-19.

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The latest announcement comes after allowing a one-time dispensation under the Scheme to allow MPs to recommend funds for purchase of medical testing and screening equipment for government hospitals and dispensaries in the wake of COVID-19. Each year under MPLADS, MPs receive Rs 5 crore in two instalments of Rs 2.5 crore each. Funds under MPLADS are non-lapsable. Lok Sabha MPs have to recommend the district authorities projects in their Lok Sabha constituencies, while Rajya Sabha MPs have to spend it in the state that has elected them to the House. Under the MPLADS rules, an MP can donate a maximum of Rs 1 crore to a trust or a public fund.