Latest on Utilisation of MPLAD Funds

IAS Prelims 2023

The Members of Parliament Local Area Development Division is entrusted with the responsibility of implementation of Members of Parliament Local Area Development Scheme (MPLADS). Under the scheme, each MP has the choice to suggest to the District Collector for works to the tune of Rs.5 Crores per annum to be taken up in his/her constituency.

The Rajya Sabha Members of Parliament can recommend works in one or more districts in the State from where he/she has been elected.

The Nominated Members of the Lok Sabha and Rajya Sabha may select any one or more Districts from any one State in the Country for implementation of their choice of work under the scheme. The Ministry has issued the guidelines on MPLADS Scheme including implementation and monitoring of the scheme. The Department has initiated all necessary steps to ensure that the scheme is successfully implemented in the field.

The position of funds released and utilized during 2016-17 and 2017-18 (up to 30.06.2017) under  the Members of Parliament Local Area Development Scheme (MPLADS) is as under:-

Rs. in crore

Year                              Released             Utilized           Unspent Balance

2016-17                        3499.50                 3903.13               5029.28

2017-18                        716.00                     691.55               5097.15

The funds under MPLADS are non-lapsable, both at the end of the Union Government and at the end of the District Authority i.e. the unspent balances of a particular year are utilized in the subsequent year (s).

In view of the nature and dynamics of the scheme, the unutilized balances, which also include interest accrued, are bound to exist at any given point of time and utilization of MPLADS funds in the same financial year is not feasible.

Implementation of the MPLADS in the field is undertaken by the District Authorities as per the State Government’s technical, administrative and financial rules.

The monitoring mechanisms, wherein the roles of the Central Government, State Governments, District Authorities and Implementing Agencies are laid down, have been duly prescribed in the Guidelines on MPLADS.

Government through the Ministry of Statistics & Programme Implementation continuously monitors and emphasizes on expeditious utilisation of MPLADS funds and where references regarding delay, etc. in the implementation of the works come to notice, the concerned State Government/District Authority are requested to take the appropriate action.

The Central Schemes concerning various Ministries are administered by the respective Ministry whereas MPLAD Scheme is being administered by Ministry of Statistics and Programme Implementation.