Delhi govt cuts MLALAD fund to ₹5 crore from ₹15 crore per constituency

The annual MLALAD fund was previously set at ₹15 crore after a 2024 hike by the AAP-led govt. The BJP-led cabinet has now reduced it to ₹5 crore per MLA, effective FY26

The Delhi government, led by the Bharatiya Janata Party (BJP), has slashed the annual MLA Local Area Development (MLALAD) fund to ₹5 crore per constituency. 

Previously, the fund stood at ₹15 crore after it was hiked by the Aam Aadmi Party (AAP)-led Delhi government in October 2024, news agency PTI reported. The earlier administration had increased the allocation by 50 per cent—from ₹10 crore to ₹15 crore.

 

Citing a recent order issued by the Urban Development Department, the PTI report said the new allocation has been fixed at ₹5 crore per Assembly constituency per year. The cabinet decision was made on 2 May.

 

“In pursuance of Cabinet Decision No. 3187 dated 02.05.2025, the allocation of funds under the MLALAD Scheme has been kept at ₹5 crore per Assembly constituency per year from the financial year 2025–26 onwards,” the order stated.

 

Citing the Council of Ministers, the order further added that this would be an untied fund and could be used for the repair and maintenance of public assets without a ceiling. It may also be utilised for capital projects approved under the scheme.

 

A BJP MLA confirmed that ₹350 crore has been allocated under the MLALAD Scheme and has been distributed equally among the 70 MLAs in Delhi.

 

What is the MLALAD fund? 

The MLALAD fund is issued annually by the state government, enabling Members of the Legislative Assembly (MLAs) to suggest development projects for their constituencies. Commonly funded works include road repairs, construction of community spaces and parks, and other local infrastructure.

 

The scheme is modelled after the central government’s MPLAD (Member of Parliament Local Area Development) scheme. While the funds are not disbursed directly to MLAs or MPs, elected representatives can recommend specific projects to be undertaken under defined guidelines.

 

According to a report in The Indian Express, the funds can only be used for “durable infrastructure work,” such as roads and community halls. During the Covid-19 pandemic, however, they were also used to procure personal protective equipment, including masks and testing kits.  (with PTI inputs)