Govt Raises MLA LAD Fund To 15cr A Year

New Delhi: With the Delhi assembly elections just four months away, AAP govt on Thursday increased the MLA local area development (MLA LAD) fund to Rs 15 crore per year. The decision was taken in a cabinet meeting chaired by chief minister Atishi.
Addressing a joint press conference with urban development minister Saurabh Bharadwaj, Atishi said the cabinet had approved a 50% hike in the MLA LAD fund, from Rs 10 crore to Rs 15 crore per annum.The allocation is the highest in the country, she added.
Sources said the move was likely to put an additional financial burden of Rs 350 crore on the exchequer. Considering a "difficult fiscal situation" in the state, sources said the finance department had denied its concurrence to the proposal and its views were incorporated in the cabinet note.
Emphasising the importance of the fund in a democracy, Atishi said that it was a crucial mechanism to initiate development projects in constituencies.
Reading out the current allocations in other states, Atishi said, "Karnataka provides Rs 2 crore each every year. Even larger states such as Maharashtra, Kerala and Rajasthan allocate only Rs 5 crore." States like Punjab, Haryana and Andhra Pradesh do not have the provision.
Explaining the rationale behind the increase, Bharadwaj said Delhi experienced a lot of rain this year, damaging roads, parks, walkways and walls. "Due to the increased rain, there are also issues with sewers in many places — they have become clogged or silted up, and new lines have to be laid," he said.
"MLAs have been regularly bringing these issues to our attention. The increased fund will enable them to quickly provide relief without waiting for long departmental sanctions," he added. The flexibility of the fund allows the legislators to address local concerns promptly, ensuring faster and more efficient responses to infrastructure and development needs, Bharadwaj pointed out.
The cabinet had increased the fund from Rs 4 crore to Rs 10 crore in 2018. The legislators got Rs 10 crore each in 2018-19 and 2019-20, before Covid-19 hit the country. While no money was allocated in 2020-21, Rs 4 crore each was earmarked in 2021-22 and 2022-23. The amount was increased to Rs 7 crore in Dec 2023. The unspent amount of an MLA does not lapse and is added to the next financial year's allocation.
Delhi BJP president Virendra Sachdeva and leader of the opposition Vijender Gupta called the increase a "deception" and demanded an audit supervision of all spending made till the elections. "The increased funds are less likely to be spent for development and on solving local problems, and is more likely to be misused by ruling party MLAs," they alleged.
"In the first four years of the current assembly, AAP govt has only provided Rs 15 crore instead of the Rs 40 crore as local area development fund. This is evident from the deteriorating condition of internal roads and alleys in Delhi, and the crumbling sewer system, which typically receives the majority of MLA funds," they stated.