Union Cabinet decides to restore MPLAD Scheme after Covid-induced suspension

Funds will be released at the rate of Rs 2 crore per MP for the remaining period of 2021-22 in one instalment

Bowing to the demands from lawmakers, the government on Wednesday decided to restore the Member of Parliament Local Area Development Scheme (MPLADS) which was suspended temporarily in April 2020 owing to the Covid-19 pandemic.

The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, decided that the scheme will resume for the remaining part of the 2021-22 financial year and continue till 2025-26 – co-terminus with the period of the 15th Finance Commission.

For the current fiscal, every Member of Parliament will get Rs two crore for development activities in his constituency as against the Rs five crore the lawmakers are entitled to for the full financial year.

The lawmakers will get Rs five crore annually from the next financial year in two instalments of Rs 2.5 crore each.

“During Covid-19, a decision had been taken by the cabinet that for two years, 2020-21 to 2021-22, MPLAD Scheme money will be used in the fight against the pandemic,” I&B Minister Anurag Thakur told reporters here.

The financial implication of the scheme for the current fiscal is expected to be Rs 1,583.5 crore, while the total outlay for the next four years will be 15,833.5 crore.

He said in view of the improvement in economic scenario, a decision was taken to restore the MPLAD Scheme for the remainder of the fiscal 2021-22.

In April 2020, the government had decided to divert MPLADS funds for two years – 2020-21 and 2021-22 – totalling about Rs 7,900 crore to improve health infrastructure and manage health services in the wake of Covid-19 pandemic.

Cutting across party lines, lawmakers had criticised the suspension of MPLADS funds and asked the government to review the decision.

Several MPs had written to the prime minister seeking restoration of the MPLADS funds.

Under MPLADS, every Member of Parliament can recommend development programmes worth Rs 5 crore every year in their constituencies. Members from both Lok Sabha and Rajya Sabha, including nominated ones, can recommend the developmental works.

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