The government has approved a massive hike of Rs 3 crore in the annual allocation for MPLADS scheme that enables every MP to recommend development works in their constituencies.
The decision to increase the annual allocation for the Members of Parliament Local Area Development Scheme (MPLADS) from Rs 2 crore to Rs 5 crore for each MP from 2011-12, was recently taken at the meeting of the Union Cabinet, chaired by Prime Minister Manmohan Singh.
The move would cost the exchequer an additional Rs 2,370 crore annually, raising the total expenditure from Rs 1,580 crore to Rs 3,950 crore per annum. The hike has been made effective from April one this year.
The decision has been taken after MPs made demands in the Parliament to raise the allocation.
The Cabinet also approved annual administrative expenses of two per cent of the annual MPLAD outlay to be given to districts or states for proper implementation and monitoring of the scheme. This amount would be met within the Rs 5 crore outlay per MP per annum.
An additional annual allocation of Rs five crore would be made to the Statistics and Programme Implementation Ministry towards monitoring of projects through independent agencies.
As on March 31 this year, 13.87 lakh works have been recommended by MPs. Of this, 12.30 lakh works have been sanctioned by the district authorities and 11.24 lakhs works completed since the inception of the scheme in 1993-94.
Over Rs 22,490 crore have been released since then and an expenditure of Rs 20,454 crore has been incurred.
The scheme, which enables the MPs to recommend works for creation of durable community assets based on locally felt needs to be taken up in their constituencies, is governed by a set of guidelines which were last revised in November 2005.