The ministry of programme implementation’s proposal to increase the MP Local Area Development fund from Rs 2 crores per annum to Rs 5 crores has hit a roadblock in the Planning Commission.
Minister for programme implementation Sriprakash Jaiswal has written to Prime Minister Manmohan Singh urging him to intervene. The move aims to neutralise price rise. In the past 11 years there has been no increase in the allocation. But the Plan panel has declined to approve it citing resource constraints.
In his letter to the PM, a copy of which is with this newspaper, Mr Jaiswal mentioned that in reply to a note prepared by his ministry, the Plan panel refused to endorse its view citing resource constraints. “The Plan panel has argued that since a number of ongoing flagship schemes required additional resources, it was not feasible to enhance MPLAD annual allocations,” it said.
A top plan panel official maintained there was “no evidence that more money is needed”. Mr Jaiswal, however, informed Dr Singh that the finance ministry has “forwarded a representation to the finance minister signed by 108 MPs for increase in annual allocation from Rs 2 crore to Rs 10 crores in view of price rise and the demands made by the constituents”.