MPLADS: Members of Parliament Local Area Development Scheme

POLITY/WELFARE

Topic: General Studies 2:

• Separation of powers between various organs
• Good Governance
• Welfare/Developmental issues

MPLADS: Members of Parliament Local Area Development Scheme

Context: The Union Cabinet approved a 30% cut in the salaries of all Members of Parliament and a two-year suspension of MPLAD scheme so that the amount saved can go to the Consolidated Fund of India (CFI) to fight COVID-19.

What is MPLADS Scheme or Sansad Nidhi Yojana?

• It is a central sector scheme for MPs to recommend works of developmental nature in their constituencies
• It was launched in December, 1993
• The emphasis is on creating durable community assets based on locally felt needs.
• Parent Body: Ministry of Statistics and Programme Implementation (MOSPI) 
• The funds – Rs. 5 crore/annum/MP – under the scheme are non-lapsable.
• Funds are released in the form of grants in-aid directly to the district authorities.
• MPs have only recommendatory role and the district authority is empowered to examine the eligibility of works, select the implementing agencies and monitor it.

Criticism of the scheme

• Against the separation of powers: It allows individual legislators to encroach on executive role of planning & implementation works
• Promotes Patronage Politics: MPLADS gives scope for MPs to utilise the funds as a source of patronage that they can dispense at will. 
• Inefficiency: Gap between recommendation made by MPs and implementation by the district administration
• Unused Funds: Some members do not utilise their full entitlement 
• Weak monitoring of the scheme has led to allegations of misuse & corruption

Views about the scheme

• Judiciary: The Supreme Court has upheld the scheme but called for a robust accountability regime
• Second ARC: It recommended its abrogation altogether, highlighting the problems of the legislator stepping into the shoes of the executive

Why MPLADS was suspended for two years?

• It frees up financial resources of about ₹7,900 crore
• It will boost the funding available for the COVID-19 fight 
• The funds can be spent on boosting the health infrastructure needed to combat the pandemic.
• Judicious usage of Funds: Money will now go into CFI and will be spent based on an assessment of the varying needs in different regions of India.

Challenges ahead due the suspension of scheme

• Political discontent: Funding under the scheme was source of much goodwill for elected representatives.
• Centralising tendency: The step undermines the decentralised manner of funding local area development
• There are dangers that allocations of freed up funds can be discriminatory.

Connecting the dots:

• Parliamentary System – Merits and Challenges
• Other instances where there is breach of Separation of Power