Congress MP seeks hike in MPLAD funds to Rs 20 crore
Congress Rajya Sabha member Pramod Tiwari on Wednesday said the allocation of Rs 5 crore per annum for MPs under the MPLAD scheme was “quite less,” and it should be increased to at least Rs 20 crore, besides abolishing GST on works carried out under the scheme.
Under the Members of Parliament Local Area Development Scheme (MPLADS), each Member of Parliament (MP) is allocated Rs 5 crore per annum to recommend development projects focusing on durable community assets like infrastructure, health, and education.
Raising the matter during the Zero Hour in the House, Tiwari described the MPLAD scheme as the most effective tool for members of Parliament to fulfil the basic needs of their electoral constituencies.
The Congress MP argued that the allocation of Rs 5 crore per MP was “quite less”, taking into account inflation and considering the fact that several constituencies have a population of over 20 lakh.
“Under this scheme, Rs 5 crore is allocated to each MP annually. However, there has been no increase in allocation over the past several years, even as the cost of developmental works has multiplied,” Tiwari said. He observed that while the cost of inputs like cement, steel and labour has risen, the population of electoral constituencies has also increased, with many having over 20 lakh people.
Tiwari said the allocation of Rs 5 crore is quite low in terms of per-person developmental expenditure.
Moreover, he said, the works executed under the MPLAD scheme generally attract a GST (Goods and Services Tax) of 18 per cent, leaving only Rs 4.10 crore, with Rs 90 lakh going towards GST.
“Taking into account inflation (price rise) and the increasing needs of electoral constituencies, the annual allocation under this scheme should be hiked to at least Rs 20 crore,” he added.
The Congress MP appealed to Rajya Sabha Chairman CP Radhakrishnan to call an all-party meet to take the decision, adding that GST should be abolished on works carried out under the scheme, making it “GST-free”.
