“MPLAD Scheme” Funds for 2019-20 cleared by Finance Minister

What is the news?

The Finance Minister has said that the funds under the MPLAD scheme (Members of Parliament Local Area Development) Scheme for 2019-20 are clear.

Note: The government of India has decided to make the MPLADS scheme non-operational for two years(2020-21 and 2021-22). These funds will be used to strengthen the Government’s efforts in managing the impact of COVID-19 in the country.

About MPLADs Scheme:

  • Members of Parliament Local Area Development Scheme(MPLADS) is a Central Sector Scheme. It was launched in 1993.
  • Nodal Ministry: Ministry of Statistics and Programme Implementation.
  • Aim: The aim is to provide funds to MPs to execute certain developmental projects in their constituencies.

Note: States have their own version of this scheme with varying amounts per MLA.

Key Features of MPLAD Scheme:

  • Under the scheme, an MP receives Rs. 5 crores per annum to identify and fund developmental projects.
  • The funds released under the scheme are non-lapsable.
    • Non-Lapsable funds should be spent within the current financial year. The next year cannot carry forward these funds.
  • The role of the MP is recommendatory in nature.  Local authorities carry out the implementation of the project.
  • The focus of the scheme is on the creation of durable community assets like roads, school buildings, etc. Further, recommendations for non-durable assets can be made only under limited circumstances.
  • Elected Members of Rajya Sabha can recommend works in the state from where they have been elected.
  • Nominated Members of both the Rajya Sabha and Lok Sabha can recommend works anywhere in the country.

Source: The Hindu

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