Why in News?

• The Union Cabinet has approved a 30% cut in the salaries of all Members of Parliament for a year and a two-year suspension of the MP Local Area Development (MPLAD) scheme so that the amount saved can go to the Consolidated Fund of India to fight COVID-19.

What is MPLADS?

• It was launched in December, 1993, to provide a mechanism for the Members of Parliament to recommend works of developmental nature for creation of durable community assets and for provision of basic facilities including community infrastructure, based on locally felt needs.
• The MPLADS is a Plan Scheme fully funded by Government of India. The annual MPLADS fund entitlement per MP constituency is Rs. 5 crore.

Special Focus of the Scheme:

• MPs are to recommend every year, works costing at least 15 per cent of the MPLADS entitlement for the year for areas inhabited by Scheduled Caste population and 7.5 per cent for areas inhabited by ST population.
• In order to encourage trusts and societies for the betterment of tribal people, a ceiling of Rs. 75 lakh is stipulated for building assets by trusts and societies subject to conditions prescribed in the Scheme Guidelines.

Works under the Scheme:

• Works, developmental in nature, based on locally felt needs and always available for the use of the public at large, are eligible under the scheme. Preference under the scheme is given to works relating to national priorities, such as provision of drinking water, public health, education, sanitation, roads, etc.

Release of Funds:

• Funds are released in the form of grants in-aid directly to the District Authorities.
• The funds released under the scheme are non-lapsable.

• The liability of funds not released in a particular year is carried forward to the subsequent years, subject to eligibility.

Execution of Works:

• The MPs have a recommendatory role under the scheme. They recommend their choice of works to the concerned district authorities who implement these works by following the established procedures of the concerned state government.
• The district authority is empowered to examine the eligibility of works sanction funds and select the implementing agencies, prioritise works, supervise overall execution, and monitor the scheme at the ground level.

Recommendation of Works:

• The Lok Sabha Members can recommend works in their respective constituencies.
• The elected members of the Rajya Sabha can recommend works anywhere in the state from which they are elected.
• Nominated members of the Lok Sabha and Rajya Sabha may select works for implementation anywhere in the country.