MP funds raised from `2cr to `5cr

Inviting a loud cheer across the political divide in the Lok Sabha, finance minister Pranab Mukherjee on Friday announced a sharp increase in the MP Local Area Development (MPLAD) fund from `2 crore to `5 crore per annum.

The FM said the increased allocation would cost the exchequer an additional `2,370 crore even as he expressed concern over inflation.
Mr Mukherjee said the CAG report on implementation of the MPLAD Scheme has just been received and would shortly be tabled in the House. Concerns expressed therein will be addressed while formulating the guidelines for enhanced allocation, said the FM. As the states of Assam, Kerala, Tamil Nadu and West Bengal and the Union Territory of Puducherry are going in for Assembly elections, MPs from these states and the UT will not be able to utilise the enhanced allocation or make commitments against this enhanced allocation till the entire election process is over, Mr Mukherjee added.
Under the MPLAD scheme, MPs are provided funds to undertake development activities in their constituencies.
The MPs had been demanding an increase in MPLAD funds to enable them to take up worthwhile developmental activities.
Telecom and HRD minister Kapil Sibal said the decision is aimed at helping the common man.

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