With reference to the Member of Parliament Local Area Development Scheme (MPLADS), consider the following statements: 1. The fund lapses if not utilized within the financial year. 2. The funds can be converged with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). 3. The funds are not exempted from Goods and Services Tax (GST). How many of the statements given above are correct? |ForumIAS

Q. With reference to the Member of Parliament Local Area Development Scheme (MPLADS), consider the following statements:
1.The fund lapses if not utilized within the financial year.
2.The funds can be converged with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
3.The funds are not exempted from Goods and Services Tax (GST).
How many of the statements given above are correct?

[A] Only one

[B] Only two

[C] All three

[D] None

Answer: B

Notes:

Explanations –

Statement 1 is incorrect. MPLADS funds are non-lapsable, meaning that any unused funds do not lapse at the end of the financial year and can be carried forward to subsequent years.

Statements 2 and 3 are correct. MPLADS funds can be converged with MGNREGS to create durable assets. Such convergence aims to enhance the impact of both schemes by pooling resources for asset creation. MPLADS funds are subject to GST, which reduces the effective amount available for development projects. The Standing Committee on Finance has recommended considering a waiver of GST on MPLADS funds to enhance their effectiveness.

Source: The Hindu

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