Answer

Introduction

The Members of Parliament Local Area Development Scheme (MPLADS), which allocates ₹5 crore annually per MP, remains a vital tool for decentralized development. Despite criticism regarding fiscal transparency and the “separation of powers” doctrine, data reveals high fund utilization and significant impact in creating durable community assets that often bypass traditional top-down bureaucratic planning.

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Role in Addressing Grassroots Developmental Needs

• Filling Infrastructure Gaps: MPLADS allows for the creation of localized assets like community centers and drinking water facilities that may not fall under large-scale central schemes.
  Eg: During the 2024-25 fiscal year, over 80% of funds were utilized for essential public utilities in rural constituencies.
• Rapid Disaster Response: The scheme provides MPs the flexibility to divert funds for immediate relief and rehabilitation during localized natural calamities.
  Eg: MPs in Wayanad (2024) utilized MPLADS funds for immediate restoration of damaged school buildings following landslides.
• Flexibility in Planning: Unlike rigid departmental budgets, MPLADS empowers local residents to suggest works based on immediate, felt needs through their representatives.
• Support for Marginalized Areas: It ensures that “shadow areas” or remote villages within a constituency receive dedicated funding for social infrastructure like hospitals or libraries.
• Creating Durable Assets: Data shows that a majority of the work involves “concrete” assets that serve the community for decades.
  Eg: As per the Ministry of Statistics and Programme Implementation (MoSPI), thousands of primary health centers have been upgraded through this scheme.

Associated Challenges

• Implementation Delays: The process of recommendation, district authority sanction, and final execution is often marred by bureaucratic “red tape.”
• Lack of Transparency: Many citizens remain unaware of the works recommended or the status of fund utilization in their specific blocks.
• Quality Control Issues: Third-party audits frequently reveal that assets created are often of sub-standard quality due to poor contractor oversight.
• Fund Underutilization: In some urban constituencies, significant portions of the funds remain “lapsed” or unspent at the end of the term.
  Eg: A 2024 parliamentary report highlighted that nearly ₹1,200 crore remained unspent globally due to administrative bottlenecks.
• Separation of Powers: Critics argue that the scheme blurs the line between the legislature (making laws) and the executive (executing work).

Measures to Improve Accountability

• Digital Real-time Tracking: Mandating the use of the e-MPLADS portal for the entire lifecycle of a project, from recommendation to the final payment.
  Eg: The 2025 upgrade to the e-MPLADS portal now allows citizens to track project geo-tagging and expenditure in real-time.
• Mandatory Social Audits: Implementing periodic audits by Gram Sabhas to verify the existence and quality of the asset on the ground.
• Unified Audit Standards: Empowering the CAG to conduct annual, rather than random, audits of MPLADS accounts in every district.

Measures to Improve Effectiveness

• Inter-Constituency Convergence: Allowing MPs to pool funds for larger projects that benefit multiple districts, such as regional trauma centers or specialized schools.
• Outcome-Linked Funding: Shifting the focus from “money spent” to “outcomes achieved” through independent impact assessment reports.
• Capacity Building of District Authorities: Training district officials to handle the e-portal efficiently to reduce the time lag between recommendation and sanction.
  Eg: The MoSPI 2026 guidelines aim to reduce the sanction period to under 45 days.

Conclusion

As it has been argued, there is no case for scrapping MPLADS; instead, there is a strong case for its evolution. When managed with transparency, it acts as a “democratic safety valve,” addressing localized grievances that larger national policies might miss. Strengthening the e-governance framework will ensure that these funds are used as intended, to build a more resilient and equitable “Viksit Bharat.”

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