MLALAD fund hike in Delhi raises poll pitch
Business Standard|October 14, 2024
AAP govt increases the amount to ₹15 crore, the highest in India, sparking Opposition criticism over potential misuse ahead of polls, writes ARCHIS MOHAN
ARCHIS MOHAN
MLALAD fund hike in Delhi raises poll pitch

With the upcoming Assembly elections just four months away, the Delhi Cabinet on Thursday increased the MLA Local Area Development (MLALAD) fund from ₹10 crore, already the highest in the country, to ₹15 crore per year for each of its 70 MLAs.

With a ₹1,050 crore budgetary allocation, Delhi's spend on its MLALAD will be the fourth most in the country, surpassing Rajasthan, which allocates ₹5 crore each to its 200 legislators, totaling ₹1,000 crore each year. Uttar Pradesh, with ₹5 crore each for its 403 MLAs and 100 Legislative Council Members (MLCs) under MLALAD, has an annual allocation of ₹2,515 crore, followed by Maharashtra's ₹1,830 crore with ₹5 crore each for its 288 MLAs and 78 MLCs, and Bihar's ₹4 crore each for 243 MLAs and 75 MLCs (₹1,272 crore).

The Delhi government introduced its MLALAD fund in 1994-95 with an allocation of ₹1 crore per MLA per year. It was modelled on the lines of the Member of Parliament Local Area Development Scheme (MPLADS), which then Prime Minister P V Narasimha Rao announced in Parliament on December 23, 1993. The scheme's objective was to enable each MP to recommend development works with an “emphasis on the creation of durable community assets based on the locally felt needs of the people”. Currently, MPLADS allocation for each MP is ₹5 crore per annum.

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