MPLADS UPSC: Relevance
- GS 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
MPLADS India: Context
- According to the revised procedure for flow of funds under the CSS (Centrally-Sponsored Scheme), including Member of Parliament Local Area Development Scheme (MPLADS), of the Finance Ministry, all interest earnings should be compulsorily remitted to the Consolidated Fund of India.
MPLADS MoSPI: Key points
- The Union Government has proposed that any interest accrued on the ₹5 crore annual funds that are allotted to each MP for their local area development scheme (MPLADS) has to be deposited back to the Centre.
- The changes proposed are aimed at timely and efficient utilisation of funds.
- Notably, the grant of funds under the MPLADS scheme was suspended for nearly 19 months due to Covid-19 pandemic and it was restored by the cabinet in November in 2021.
What is MPLADS?
- MPLADS full form: Member of Parliament Local Area Development Scheme.
- MPLADS meaning: The MPLAD Scheme was launched in 1993 to provide a mechanism for the Members of Parliament to recommend works of developmental nature for creation of durable community assets.
- The Scheme was launched to provide basic facilities including community infrastructure, based on locally felt needs to be taken up in their Constituencies.
- The Scheme was initially under the control of Ministry of Rural Development. It was later transferred to the Ministry of Statistics and Programme Implementation.
- MPLADS is a centrally sponsored scheme fully funded by the Government of India.
- The funds released under the Scheme are non-lapsable. The annual entitlement per MP per Constituency is Rs. 5 crore which is released by the Nodal Ministry in two instalments of Rs. 2.5 crore each.
- The second instalment of the MPLADS funds is released subject to the fulfilment of the following eligibility criteria
- the unsanctioned balance amount is less than Rs.1 crore;
- the unspent balance is less than Rs. 2.5 crore.
- Utilization Certificate of the previous financial year and Audit Certificate for the funds released for MP concerned in the year prior to previous year have been furnished by District Authority.
- The elected members of the Rajya Sabha can recommend works anywhere in the State from which they are elected.
- Nominated Members of Rajya Sabha may recommend works for implementation anywhere in the country.
- An MP can recommend eligible works upto Rs. 25 lakh per year outside his/her jurisdiction, provided that such contribution will not be allowed for NGOs.
- 15% of MPLADS funds are to be utilized for areas inhabited by SC population and 7.5% for areas inhabited by ST population.
- The time frame for completion of works should be stipulated to the implementing agency and should not normally exceed one year.
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