UPSC Articles
POLITY/ GOVERNANCE
Topic: General Studies 2:
- Issues and challenges pertaining to the federal structure
- Government policies and interventions for development in Health sectors
Abolotion of Members of Parliament Local Area Development Scheme (MPLADS)
Context:
Recently, Members of Parliament Local Area Development Scheme (MPLADS) was suspended by the Central government for two years.
- All Opposition parties have criticised the Government’s move.
- However, the government has reasoned that these funds are needed to strengthen the government’s efforts in managing the challenges and adverse impact of COVID-19 in the country.
What is MPLADS?
- Under the scheme, each Member of Parliament may suggest works to the District Collector amounting ₹5 crores per year which can be taken up in his/her constituency.
However, the experts feel that the MPLADs scheme should be completely abolished due to following reasons:
Separation of powers
- The scheme gives an executive function to legislators.
- hardly any authorities in the district who have the courage to defy the wishes of an MP.
CAG’s observations
- According to Comptroller and Auditor General (CAG)’s report, utilisation of funds is between 49 to 90% of the allotted amount.
- Though the scheme envisages that works under the scheme should be limited to asset creation, 78% of the works that were recommended were for improvement of existing assets.
- Lesser quantities of material were used than specified by contractors resulting in excess payments and sub-standard works.
- There was no accountability for the expenditure in terms of the quality and quantities executed.
- Delays in issuing work orders ranged from 5 to 387 days in 57% of the works. The work order must be issued within 45 days of the receipt of recommendation by the MP.
- Without following the correct procedure, extensions of time were granted to the contractors.
- Register of assets created were not maintained. Thus, location and existence of assets could not be verified.
Gaps in utilization
- There are wide variations in the utilisation of the MPLAD amount in various constituencies.
- According to a report published in IndiaSpend:
- 298 of 542 Lok Sabha members had not spent a rupee from the ₹5 crore that is set aside annually for them to develop their constituencies even after a year of their election.
- Though ₹1,757 crore had been released for MPLADs, only ₹281 crore had been utilised by all the 543 MPs till May 15, 2015.
- This means only 16% of the money had been spent in one year by all the MPs put together.
- Since the MPLADS began in 1993, ₹5,000 crore was lying unspent with various district authorities by May 15, 2015.
Funds being utilised for appeasement
- MPLADS funds are also used to appease opinion-makers and favourite contractors.
- Often, the contractor is a relative, close friend, or a confidant of the MP.
Constitutional validity
- Constitutional validity of MPLADS was challenged in the Supreme Court of India in 1999, followed by petitions in 2000, 2003, 2004, and 2005.
- The combined judgment for all these petitions was delivered in 2010 and the scheme was held constitutional.
- It is often pointed out that the judgement was pronounced without an assessment of the situation prevalent in the field.
- Audit reports wherein gross irregularities and infirmities in implementation have been pointed out were not considered as evidence .
Conclusion
- Reports of underutilisation and misutilisation of MPLADS funds continue to surface at regular intervals but no serious attempt has been made to do anything about it till now.
- It would be in public interest to convert the two-year suspension into the complete abolition of this scheme.
- The same fund could be utilised for health and education purposes and in generating employment.
Connecting the dots
- While taking over MPLADS funds to fight the virus, Centre must allocate judiciously.
