Source: The post “There is no case for scrapping MPLADS funds” has been created, based on “There is no case for scrapping MPLADS funds” published in “Business line ” on 04th February 2026.
UPSC Syllabus: GS Paper-2- Indian Economy
Context: The Members of Parliament Local Area Development Scheme (MPLADS), introduced in 1993, enables MPs to recommend works worth ₹5 crore annually to address locally felt development needs. Recent debates have questioned the relevance of MPLADS, citing misuse and role conflict. However, scrapping the scheme is neither necessary nor desirable.
Arguments in favour of continuing MPLADS
- Addresses local and immediate needs: MPLADS allows MPs to respond quickly to grassroots issues such as drinking water, sanitation, schools, health facilities and community assets, which often remain unmet due to bureaucratic delays.
- Complements local government efforts: The scheme does not replace Panchayats or municipalities but supplements their limited financial capacity, especially in backward and remote areas.
- MP’s role remains recommendatory: MPs only recommend works; execution and implementation lie with district authorities. Hence, it does not violate separation of powers between legislature and executive.
- Proven utility during emergencies: MPLADS funds have been effectively used during natural disasters, pandemics and infrastructure gaps, showing its flexibility and relevance.
- Issues are of implementation, not design: Problems such as under-utilisation, delays or misuse arise due to weak monitoring and administrative inefficiencies—not because the scheme itself is flawed.
Criticism of MPLADS
- Alleged violation of separation of powers: Critics argue that MPLADS blurs the line between the legislature and the executive by allowing MPs to influence development works. This raises concerns about constitutional propriety.
- Under-utilisation and uneven spending: Many MPs fail to utilise their full allocation, leading to accumulation of unspent funds. Utilisation levels also vary widely across constituencies and states.
- Delays in project execution: Projects recommended under MPLADS often face delays due to administrative bottlenecks, weak coordination between MPs and district authorities, and slow tendering processes.
- Transparency and accountability concerns: Instances of poor quality works, cost overruns and lack of public disclosure have raised doubts about financial accountability and monitoring.
- Overlap with local government functions: It is argued that MPLADS undermines Panchayati Raj Institutions and urban local bodies by bypassing local planning processes.
- Risk of political patronage: There is concern that MPLADS funds may be used selectively to favour certain areas or groups, leading to inequitable development.
Way Forward
- Strengthen monitoring and auditing mechanisms: Regular social audits, third-party inspections and stricter Comptroller and Auditor General (CAG) oversight can address misuse and quality concerns.
- Enhance transparency through digital platforms: Real-time online dashboards showing fund allocation, project status and expenditure can improve public accountability.
- Time-bound execution of projects: Clear timelines with penalties for delays should be enforced to improve efficiency and utilisation.
- Better coordination with local governments: MPLADS works should be aligned with district and local development plans to avoid duplication and strengthen cooperative federalism.
- Capacity building of district administration: Training and technical support for implementing agencies can improve project planning, execution and monitoring.
- Clear role demarcation: Reinforcing the recommendatory role of MPs and the executive role of district authorities will address constitutional concerns.
Conclusion
MPLADS serves as an important bridge between elected representatives and local development needs. Rather than abolishing the scheme, focused reforms and stronger oversight can enhance its effectiveness.
Question: Critically examine the arguments for and against the Members of Parliament Local Area Development Scheme (MPLADS). Do the concerns raised justify scrapping the scheme? Suggest reforms.
Source: The Hindu
