Explainer: MPLAD Fund – Why Rajya Sabha MPs Have More Flexibility Than Lok Sabha MPs

Jaipur: The Members of Parliament Local Area Development (MPLAD) scheme provides MPs the authority to recommend developmental projects in their constituencies. While both Lok Sabha and Rajya Sabha MPs receive the same annual allocation, the rules give Rajya Sabha MPs greater flexibility in utilizing the funds compared to their Lok Sabha counterparts.

Geographical Flexibility
Under MPLAD guidelines, Rajya Sabha MPs can recommend developmental projects anywhere in the country. In contrast, Lok Sabha MPs are primarily restricted to their parliamentary constituencies. They can only propose projects outside their area within limited financial limits. The higher flexibility for Rajya Sabha members exists because they represent entire states or the nation, rather than a specific constituency.

Annual Allocation and Permissible Uses
Both Lok Sabha and Rajya Sabha MPs receive equal annual funding under MPLAD. The funds can be used for roads, buildings, drinking water, education, healthcare, community halls, crematoriums, libraries, and other basic infrastructure projects. However, the money is not handed directly to MPs. They merely recommend projects, which are then approved and executed by district authorities and state governments to ensure transparency.

Controversies Over Rajya Sabha Privileges
The unrestricted power of Rajya Sabha MPs to fund projects nationwide has occasionally led to political disputes, especially when they recommend projects outside their state. Nevertheless, the practice is within the framework of MPLAD rules.

Difference From MLALAD for State Legislators
MLALAD is the equivalent scheme for state legislators. Allocation varies by state: Delhi MLAs receive up to ₹10 crore annually, Punjab and Kerala ₹5 crore, Assam, Chhattisgarh, Maharashtra, and Karnataka ₹2 crore, and Uttar Pradesh recently increased its limit from ₹2 crore to ₹3 crore per year.

MPLAD Suspension and Government Fund Allocation
When the MPLAD scheme was temporarily suspended, the central government freed up around ₹7,800 crore. This amount represented approximately 4.5% of the ₹1.70 lakh crore relief package announced under the Prime Minister’s Garib Kalyan Yojana. Opposition parties criticized the move, citing concerns over excessive centralization and inequity in fund allocation.

Implementation and Guidelines
Funds under MPLAD are released directly to local authorities or agencies, with MPs serving only as recommenders. Priority is given to creating durable assets, though non-durable purchases, such as PPE kits and COVID-19 testing equipment, are allowed in exceptional circumstances.

History of MPLAD
The MPLAD scheme was launched on 23 December 1993 by then-Prime Minister P.V. Narasimha Rao in the Lok Sabha, responding to requests from MPs across parties. While some MPs opposed the initiative at the time, it has since become a cornerstone program for constituency-level development.