Increase in Allocation for MPLAD Scheme

MPLAD Scheme: Members of Parliament Local Area Development Scheme

MPLAD Scheme stands for Members of Parliament Local Area Development Scheme. Union Finance Minister Pranab Mukherjee on 11 March 2011 announced in Lok Sabha an increase in the allocation under the Members of Parliament Local Area Development Scheme (MPLAD) Scheme from Rs.2 crore to Rs.5 crore per Member. The hike will result in an increased allocation of Rs 2370 crore for the 2011-12 financial year.

The MPLAD scheme introduced by the Narasimha Rao government in 1993 was meant to help MPs execute small works of a local nature to meet the urgent needs of their constituents. Under the scheme, each Member of Parliament has the choice to suggest to the district collector work to the tune of Rs 2 crore per annum to be taken up in his or her constituency. A Rajya Sabha member can recommend work in one or more districts in the state from where he or she has been elected. Till date the government has Rs 22227.25 crore under the scheme against which the expenditure incurred is Rs 20298.71 crore, representing a 91.32-per cent utilisation rate.