Decline in MPLADS Funds | 13 Mar 2025

Source: BL 

Why in News? 

The latest data by Ministry of Statistics and Programme Implementation (MoSPI) on the Members of Parliament Local Area Development Scheme (MPLADS) indicates a decline in the total funds released by the central government for the 17th Lok Sabha (2019-2024) compared to the 16th Lok Sabha (2014-2019). 

What are the Key Highlights of the MoSPI Data on MPLADS? 

  • Decline in Funds: The MPLADS funds for the 17th Lok Sabha (2019-2024) totaled Rs 4,510 crore, a 65.2% decline from the 16th Lok Sabha, primarily due to the Covid-19 pandemic. 
  • Utilization of Funds: In the 14th Lok Sabha, MPLADS funds saw 102% utilization, while the 16th and 17th Lok Sabhas recorded 99% and 98% utilization, respectively. 
  • Regional Disparities: MPs from Uttar Pradesh, Maharashtra, and West Bengal received the highest MPLADS funds, while those from Delhi, Haryana, and Punjab received the lowest. 
  • Sector-wise Fund Distribution: During the 17th Lok Sabha period, Rs 1679 crore were allocated to infrastructure (railways, roads, bridges), followed by other public facilities and education. 

 MPLADS_Funds_Allocation

What is MPLADS?  

  • About: MPLADS is a  Central Sector Scheme introduced in 1993 that enables the Members of Parliaments (MP) to recommend developmental work in their constituencies with an emphasis on creating durable community assets based on locally felt needs.  
  • Implementation: A state-level nodal department oversees MPLADS, while district authorities sanction projects, allocate funds, and ensure implementation.  
  • Funding Allocation: Each MP is allocated Rs 5 crore per year since 2011-12. Funds are disbursed by the Ministry of Statistics and Program Implementation (MoSPI) to district authorities in two installments of Rs 2.5 crore each.  
    • Nature of Funds: Funds are non-lapsable and carried forward if not utilised in a given year. MPs must allocate a minimum of 15% and 7.5% of their funds to create assets for Scheduled Castes (SCs) and Scheduled Tribes (STs), respectively.  

 working_of_MPLADS

  • Special Provisions: MPs can allocate up to Rs 25 lakh annually outside their constituencies or states for projects promoting national unity.  
    • For severe natural calamities, MPs can allocate up to Rs 1 crore for projects anywhere in India.  
  • Projects Eligible Under MPLADS: MPLADS funds can be converged with the MGNREGS for durable asset creation and integrated with the Khelo India program for sports infrastructure development.   
    • Infrastructure support is permitted on lands owned by registered societies or trusts engaged in social welfare for at least three years, but prohibited for societies where the MP or their family members are office-bearers. 

What are the Main Arguments For and Against MPLADS? 

Click Here to Read: Arguments For and Against MPLADS 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Q. With reference to the funds under the Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct? (2020)

  1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. 
  2. A specified portion of each MP’s fund must benefit SC/ST populations. 
  3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year. 
  4. The district authority must inspect at least 10% of all works under implementation every year. 

Select the correct answer using the code given below: 

(a) 1 and 2 only 

(b) 3 and 4 only 

(c) 1, 2 and 3 only 

(d) 1, 2 and 4 only