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 schemeso 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
