In a major setback for parliamentarians expecting a steep hike in their local area development fund, Planning Commission has rejected the proposal to enhance MPLAD funds to Rs 5 crore from Rs 2 crore.
The proposal, supported by MPs cutting across party line, was moved by ministry of statistics and programme implementation (MoSPI) which is handling the MPLAD scheme.
After taking over as minister, Sri Prakash Jaiswal had accused the plan panel of sitting over the proposal to raise the local area fund of MPs, arguing for the hike citing inflation since the scheme came into existence in 1993.
Interestingly, the move to increase the fund also got support from a parliamentary committee which went so far as to suggest that the MPLAD fund for each constituency should be Rs 10 crore. Arguing in favour of rejection of the move, a plan panel official said, “The panel is already providing huge funds. There is no reason to increase funds under MPLAD scheme.”