MPLAD fund hiked from Rs 2 cr to Rs 5 cr

Move to cost 2,370 cr more to exchequer

As many as 797 Lok Sabha and Rajya Sabha MPs will get Rs 5 crore under the MPLAD scheme as against the current allocation of Rs 2 crore, Finance Minister Pranab Mukherjee said while replying to a debate on the General Budget in the Lok Sabha on Friday.

The hike will result in an additional allocation of Rs 2,370 crore per year. However, the minister said MPs from election-bound states Assam, Kerala, Tamil Nadu, West Bengal and Union Territory of Puducherry will not be able to utilise the enhanced allocation or make commitments against this enhanced allocation till the entire election process was over.  

While the Planning Commission had been opposing any increase in the fund allocations under the scheme saying that this would result in limiting resources for other flagship schemes, the MPs were fiercely insisting that the fund allocated was not enough.Several studies have pointed out that the MPLAD fund was widely misused and MPs were using this fund to please their followers by sanctioning only selectively instead of serving the real cause for which it was set up. 

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