Delhi cabinet hikes MLALAD fund to Rs 10 crore, twice that of MPs

NEW DELHI: In a major decision, the Delhi cabinet on Tuesday approved the proposal of increasing the MLA local area development (MLALAD) funds from the current Rs 4 crore to Rs 10 crore annually. The fund was last revised by the Sheila Dikshit government in 2011-12 when it was increased from Rs 2 crore to Rs 4 crore.
The AAP government had proposed to increase MLALADs to Rs 14 crore for the financial year 2016-17, but it was rejected by the Centre.



Sources said the Supreme Court order of July 4, which gave clarity on the executive powers of the elected government, paved way for the decision. Interestingly, members of Parliament get a discretionary fund of only Rs 5 crore every year under the MPLAD fund even though they have 10 assemblies in their parliamentary constituencies.

“It is a big example of decentralisation of funds and functioning of the government. MLAs have more idea about the projects in their respective assembly segments that require more funds in comparison to ministers and officers,” deputy chief minister Manish Sisodia said.

Sisodia announced the cabinet decision in Delhi assembly amid loud thumping of tables and cheers from AAP legislators. In a statement issued after the cabinet meeting, the government said the condition of civic infrastructure in most residential colonies was in a bad shape and required immediate augmentation and overhaul.

“The limit of Rs 4 crore for MLALAD was fixed in 2011-12 and has remained the same despite the budget outlay of Delhi increasing from Rs 27,000 crore in 2011-12 to over Rs 50,000 crore in the current financial year. The failure of the local bodies and DDA in maintenance and upkeep of civic amenities and infrastructure is a well-known fact, which could be tackled to some extent by increasing the quantum of funds and scope of work in the MLALAD scheme,” the statement said.

The deputy CM said guidelines and procedures will be issued from time-to-time by the urban development department for fresh works to be undertaken under the MLALAD scheme.

Leader of opposition in Delhi assembly, Vijender Gupta, however, termed the decision as political and questioned the logic behind revising the funds in the middle of the financial year.

“The funds have been increased mid-year to hide the incompetence and non-performance of the AAP government. If the government was so serious about the issue, it would have made a provision for it while presenting the budget for 2018-19. The decision has been taken keeping in mind the Lok Sabha elections, which are less than a year away,” Gupta said.

While AAP legislators lauded the development, they complained in the House that the urban development department was taking over six months in releasing money for works being undertaken under MLALAD scheme. “We hope that once the court settles the services matter and the elected government gets control, the urban development department officials will start releasing money within 3-4 days,” Greater Kailash MLA Saurabh Bhardwaj said.