Norms for MPLAD funds utilisation to be revised

With the government raising funds for the MPLAD scheme to Rs 5 crore, the Ministry of Statistics and Programme Implementation has said it will soon come up with revised guidelines for efficient utilisation of the fund.

"We are in the process of revising guidelines of MPLAD scheme ... Now that more money is being given, we will work hard to ensure its prompt and correct use," Minister of State for Ministry of Statistics and Programme Implementation MS Gill said.

Finance Minister Pranab Mukherjee on Friday announced increasing the fund allocation under the Member Parliament Local Area Development (MPLAD) scheme to Rs 5 crore from existing Rs 2 crore per annum.

There was a long pending demand of MPs that the funds should be increased in view of rising prices. Many times it was pointed out in Parliament during discussion on General Budget that MPs are getting much less than what Assembly members get.

Gill stressed, "It is always necessary that the MPs allocation be promptly implemented. It is also necessary that fund be properly used. We have inputs from MPs and the two Parliamentary committees on MPLAD scheme."

About taking up the case for upward revision of funds allocation under the scheme, Gill said, "I was aware of the necessity to increase funds under the MPLAD scheme. The fund allocation for sitting MPs was Rs 2 crore per annum since 1998."

"12 years have passed, prices are risen...State have given much more up to assembly constituencies and in some case up to Rs 3 crore," he pointed out.

He further argued, "In one Parliamentary constituencies, there are six assembly constituencies. Therefore I felt, there was a need  and I worked hard at levels that matter (for increase in fund allocation under the MPLAD scheme)."

About doubt being raised on the performance of the scheme, he said, "This scheme is being independently reviewed by NABCON which found that there is impressive and effective use of this money overall."

"They (NABCON) are being directed to quickly assess the performance of all states in India," he added.

NABARD Consultancy Services (NABCON) is a wholly owned subsidiary promoted by the National Bank for Agriculture and Rural Development (NABARD), which is engaged in providing consultancy in all spheres of agriculture, rural development and allied areas.