Ministry revises MPLADS rules

Ministry revises MPLADS rules

Subject: Polity

Section: Parliament

Context: The Union Finance Ministry has ordered revised rules, under which the interest that the fund accrues will be deposited in the Consolidated Fund of India. So far, the interest accrued on the fund used to be added to the MPLADS account and could be usedfor the development project

 Concept

• The MPLADS is a Plan Scheme fully funded by Government of India. The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.
• MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by S.T. population.

Works under the scheme:

• Works, developmental in nature, based on locally felt needs and always available for the use of the public at large, are eligible under the scheme. Preference under the scheme is given to works relating to national priorities, such as provision of drinking water, public health, education, sanitation, roads, etc.

   Release of Funds:

• Funds are released in the form of grants in-aid directly to the district authorities.

• The MPLADS fund is released to the district authority and the MPs only have power to recommend development work. The payment is also released by the designated district authority on completion of the work

• The funds released under the scheme are non-lapsable.
• The liability of funds not released in a particular year is carried forward to the subsequent years, subject to eligibility.

Execution of works:

• The MPs have a recommendatory role under the scheme. They recommend their choice of works to the concerned district authorities who implement these works by following the established procedures of the concerned state government.
• The district authority is empowered to examine the eligibility of works sanction funds and select the implementing agencies, prioritise works, supervise overall execution, and monitor the scheme at the ground level.

Recommendation of works:

• The Lok Sabha Members can recommend works in their respective constituencies.
• The elected members of the Rajya Sabha can recommend works anywhere in the state from which they are elected.
• Nominated members of the Lok Sabha and Rajya Sabha may select works for implementation anywhere in the country

Consolidated Fund of India

Consolidated Fund of India is the most important of all government accounts. Revenues received by the government and expenses made by it, excluding the exceptional items, are part of the Consolidated Fund.

This fund was constituted under Article 266 (1) of the Constitution of India. All revenues received by the government by way of direct taxes and indirect taxes, money borrowed and receipts from loans given by the government flow into the Consolidated Fund of India.

All government expenditure is made from this fund, except exceptional items which are met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without the Parliament’s approval.