Dr R S Bawa & Dr G S Kainth
There are large variations in infrastructure development across the States of Indian Union. A centrally-sponsored plan scheme fully funded by the government of India is one of the steps taken to address the issue of inequity in development. Under this scheme, the funds are released in the form of grants in-aid directly to the district authorities.
THE SCHEME: The MPLAD and MLALAD scheme was launched on 23rd December 1993, by former Prime Minister, P V Narasimha Rao to execute small works of a local nature to meet the urgent needs of their constituents. The scheme empowers every Member of Parliament (MP) to spend a certain sum of amount on the development of his/her constituency on various social development areas such as health, education, drinking water, electricity, family welfare, sanitations and so on. The objective of this Scheme is to fill the gaps existing in the provision of infrastructure through various Central and State schemes thereby enabling wholesome development. The central idea is creation of durable community assets and for provision of basic facilities including community infrastructure, based on local requirements. Under the Scheme, yearly allocations are provided for undertaking developmental works within an electoral constituency. The initial amount allocated was Rs 5 lakh per year to each MP which was enhanced to Rs 5 crores. The MPs can recommend the work(s) in their constituency (in case of Lok Sabha) or anywhere in the state from where they are elected (in case of Rajya Sabha). Under the MPLAD Scheme, the release of installments and their utilization is non lapsable, i.e. the funds for a particular year can be released and also utilized in the same year or the subsequent year(s) subject to eligibility. The preference is given to works such as related to national priorities, including provision of drinking water, public health, education, sanitation, roads, etc. The Ministry of Statistics and Programme Implementation has been designated as the nodal agency to coordinate the work and to conduct internal audit of the work carried out by the public representatives. The ministry compiles the data of the utilization of the fund based upon the inputs provided by the concerned. The scheme is 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. It has, however not been smooth sailing for the scheme. Besides the many implementation lapses (as pointed out by the Standing Committee on Finance in 1998-1999, the CAG and the Planning Commission), the constitutionality of the scheme has been questioned by various scholars and experts.
The scheme was thought to be a potential developmental scheme which would benefits the local residents of every constituency/district in the form of suitable social infrastructure. It was suppose to enthuse more energy into the representatives to recommend productive works in their areas in order to receive favourable votes in the next election.
ROLE OF DISTRICT AUTHORITY: The district authority is empowered to examine the eligibility of works sanction funds and select the implementing agencies, prioritize works, supervise overall execution, and monitor the scheme at the ground level. The district authorities get the works executed through the line departments, local self governments or other government agencies. In some cases, the district authorities get the works executed through reputed non government organizations. Delay or laxity in sanction or implementation (of works recommended under MPLADS) is the responsibility of the district authorities. The district authorities are generally required to approve eligible recommended works within 75 days and to complete them within one year. The projects should be sanctioned and implemented even if an MP demits his membership as MPLADS funds are non-lapsable. MPs can recommend works up to their full annual entitlement at any time of the year. Each MP can suggest to the district collector works up to the tune of Rs 5 crore a year to be taken up in his or her constituency. The Government of India releases the annual entitlement of Rs. 5 crore in two equal installments of Rs 2.5 crore each, directly to the district authority.
THE PROBLEMS: The scheme largely failed to achieve its objective and met the fate of other similar schemes which benefitted only to certain strata precisely the Politician-bureaucrats-contractors. The scheme though has many credible works in its credit (such as Bihar Flood rehabilitation, Tsunami Works, etc), majority of the fund allocated for the scheme was either unspent or spent frivolously which only bewildered the hopes of the common man and made the nexus even more powerful. The total amount spent using MPLAD scheme is not less than Rs. 4000 crore per annum at the rate of Rs. 5 crore on one MP. The ministry of statistics and programme implementation, the nodal agency in its internal audit has consistently exposed that majority of the MPs in the key competency of spending the amount properly and on effective and duration assets have failed in their duty. The sorry state of affairs even continued in the last lok Sabha (i.e. the 15th Lok Sabha) in which not even a single Member of Parliament has been able to utilize the fund allocated under the scheme for infrastructure development in his/her constituency. Also, recent reply under Right to Information Act, 2005 showed that in majority of the districts, the guidelines for implementing the scheme were violated and some MPs even went to the extent of creating their own assets out of this fund contravening the strict guidelines on what areas the money can be spent. The implementation of the scheme was entitled to the district authorities only to make it more efficient and without any undue involvement from the concerned MP. It was also entrusted that a transparent and accountable system will be developed by the giving the implementation to seasoned officer (such as engineers, accountants, etc) under the direct control and supervision of the District collector. The MP was allowed to only inspect the work created so far. However, it could not prevent the nexus to develop and use it to fulfill their objectives rather than the objectives which were envisioned at its conception. In addition MP’s recommend work based upon yes person/followers of his/her party affiliations and mostly in his party dominated areas leaving aside/untouched the areas of opposition from h/she did not have favourable votes – A mere shame on the democracy too. If corruption is the biggest illness that business faces then there is a vaccine and that is transparency. We all need to be vaccinators, front-line workers for transparency.
MPLAD and Principle of Separation of Power: One of the important issues is that MPLAD Scheme assigns executive functions to legislators and thereby confuses the separation of power. The Second Administrative reform Commission used this critique to recommend that the Scheme be abolished. As local bodies are better placed to deliver civic services then it may be wiser to devolve funds directly to them rather than to the MPs.
IMPROVISATION: MPLAD scheme can be improved with certain tweaks in its implementation reforms. The districts authorities and MPs should be answerable to the effective utilization of the fund and there should an incentive for those officials who are doing the work as per the expectations to achieve the common objective of local development via creating durable social assets. The continuous monitoring recommendation of Controller and Auditor General (CAG) of India should also be followed. The MPLAD scheme has great potential to develop each constituency and district provided it has been studded with proper implementation mechanism which should essentially break this nexus of politician-bureaucrat-contractor.
Chairman of the Public Accounts Committee of Parliament K V Thomas said MPs cutting across party lines will meet the Prime Minister, demanding enhancement of the MPLADS fund from Rs five crore to Rs 50 crore for implementation of the Saansad Adarsh Gram Yojana. “Our demand is either enhance the MPLADS fund to Rs 50 crore, or give special assistance to the projects in the model villages. Thomas said at present the “lacuna” in the Prime Minister’s scheme is that there is no special assistance for the model villages from the Government of India. On the other hand, Government of India says to coordinate all the state government and central government projects in these model villages and develop the village and use the Rs five crore which is given as MPLADS fund. This is not practical. MPLADS funds have to be used in all parts of the parliament constituencies and not in a particular village. Now the government is considering a proposal to increase annual allocation under the MPLADS from Rs 5 crore to Rs 25 crore for every MP. Had the initial amount of Rs five crore used properly; there would have been transformational change in the India especially the rural areas. There is a very strong need for proper execution and implementation of the scheme in its true spirit.
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