The Union Cabinet of India in its meeting on 7 July 2011 decided to increase the development funds allocated to Members of Parliament under Local Area Development (MPLAD) Scheme from the existing 2 crore to 5 crore rupees from the financial year 2011-12.
The meeting was chaired by the Prime Minister Manmohan Singh. The enhanced total expenditure will amount to 3950 crore rupees an increase of 2370 crore rupees from the earlier 1580 crore per annum.
The cabinet also approved annual administrative expenses of 2 percent of the annual outlay under MPLAD scheme to be given to the states and districts so that the scheme could be monitored and implemented properly.
The MPLAD scheme was launched in 1993-94. The project funded include creation of infrastructure to provide education, public health, drinking water, sanitation and roads.
It should be noted that under MPLAD scheme, funds are allocated to MPs of both Lok Sabha and Rajya Sabha.
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