MLA-LAD Scheme | 12 May 2021

Why in News

Recently, Rajasthan Government has approved a proposal to provide Rs. 3 crore each from the MLA Local Area Development (LAD) Fund to mobilise resources for Covid-19 Vaccination of the people in the age group of 18 to 44 years.

  • For meeting the expenses, the fund for each legislator has been increased from Rs. 2.25 crore to Rs. 5 crore a year.

Key Points

  • Members of Legislative Assembly Local Area Development (MLA-LAD) Scheme:
    • It is the States’ version of a central government scheme - Members of Parliament Local Area Development Scheme (MPLAD).
    • The objective of this scheme is to create local need based infrastructure, to create assets of public utility and to remove regional imbalances in development.
      • This scheme is implemented in rural areas as well as urban areas of a state.
    • MLAs do not receive any money under this scheme. The government transfers it directly to the respective local authorities.
      • The legislators can only recommend works in their constituencies based on a set of guidelines.
      • Amounts per MLA varies across the states. Delhi has the highest allocation under MLALAD; each MLA can recommend works for up to Rs. 10 crore each year.
    • The guidelines for use of MLA-LAD funds differ across states.
      • For example, Delhi MLAs can recommend the operation of fogging machines (to contain dengue mosquitoes), installation of CCTV cameras etc.
      • After the legislators give the list of developmental works, they are executed by the district authorities as per the government's financial, technical and administrative rules.
  • Members of Parliament Local Area Development Scheme (MPLAD):
    • It is a Central Sector Scheme.
    • It was announced in December 1993 and initially came under the control of the Ministry of Rural Development. Later, in October 1994, it was transferred to the Ministry of Statistics and Programme Implementation.
    • Each year, MPs receive Rs. 5 crore in two instalments of Rs. 2.5 crore each. Funds under MPLAD Scheme are non-lapsable.
    • Objective:
      • To enable MPs to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs to be taken up in their Constituencies.
        • Lok Sabha Members can recommend works within their constituencies and elected Members of Rajya Sabha can recommend works within the State they are elected from.
        • Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.
      • To create durable assets of national priorities viz. drinking water, primary education, public health, sanitation and roads, etc.
    • Since June 2016, the MPLAD funds can also be used for implementation of the schemes such as Swachh Bharat Abhiyan, Accessible India Campaign (Sugamya Bharat Abhiyan), conservation of water through rain water harvesting and Sansad Aadarsh Gram Yojana, etc.
    • The Union Cabinet has given its nod to the temporary suspension of MPLAD Funds during 2020-21 and 2021-22 in view of the adverse impact of the outbreak of Covid-19 in India.
    • Criticism:
      • It is inconsistent with the spirit of the Constitution as it co-opts legislators into executive functioning.
      • The second criticism stems from allegations of corruption associated with allocation of works.

Source: TH