Lok Sabha Question No. 266 (UNSTARRED), answered on 2021-02-03
Subject: Allocation of Funds
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Saptagiri Sankar Ulaka

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

LOK SABHA UNSTARRED QUESTION No.  266 TO BE ANSWERED ON 03.02.2021

## ALLOCATION OF FUNDS

266. SHRI SAPTAGIRI SANKAR ULAKA:

Will the Minister of STATISTICS AND PROGRAMME IMPLEMENTATION be pleased to state:

(a) whether the Government is planning to allocate funds utilized by previous member to current member;

(b)  if  so,  the  details  thereof  including  procedures  and  if  not,  the reasons therefor;

(c) the detailed process on MPLADS sanctioning of funds along with the  timeline  by  when  funds  would be  sanctioned  for  the  first  year and requirement for further allocations?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING (RAO INDERJIT SINGH)

(a)  No Sir.

(b) However,  with  regard  to  transfer  of  balance  of  MPLADS funds left  by  the  predecessor  MP  to  the  successor  MP,  the relevant para of the MPLADS Guidelines are given in Annexure I;

(c)  The detailed process of sanctioning of MPLADS funds and fund release and management are given in the MPLADS guidelines,  details of which are given in Annexure II.

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## Annexure I

## Relevant Para of the MPLADS Guidelines for transfer of balance of MPLADS funds left by the predecessor MPs to successor MPs

- 4.7 In  respect  of  elected  Members  of  Lok  Sabha,  the  balance  of MPLADS funds left by the predecessor MP in Lok Sabha constituency  (funds  not  committed  works  of  the  predecessor  MP) would be passed on to the successor MP from the constituency. (In case of the delimitation, separate orders will be issued).
- 4.8 In respect of elected Members of Rajya Sabha, the balance of funds (funds not committed for the recommended works) left in the Nodal District by the predecessor Member in a particular State on his demitting office will be equally distributed by the State Government among the successor elected Rajya Sabha Members in the State. The unspent balance of even earlier Rajya Sabha MPs if not distributed, will be equally distributed among the sitting Rajya Sabha Members of the State concerned by the State Government.
- 4.9 The balance of funds (funds not committed for the recommended and sanctioned works) left by the nominated Members  of  Rajya  Sabha  in  the  Nodal  District  will  be  equally distributed  amongst  the  successor  nominated  Members  of  Rajya Sabha by the State Government with the approval of Government of India.
- 4.10 The balance of funds (funds not committed for the recommended and sanctioned works) left by Anglo-Indian nominated  Lok  Sabha  MPs  will  be  equally  distributed  among  the successor  Anglo-Indian  nominated  Lok  Sabha  MPs  by  the  State Government with the approval of Government of India.

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## Relevant Para of the MPLADS Guidelines for sanctioning of MPLADS funds and on Fund release and management

- 3.8 If  the  estimated  amount for a work is more than the amount indicated  by  the  MP  for  the  same,  MP's  further  consent  is necessary before the sanction is accorded.
- 3.9 The work should be sanctioned and executed only if the MP concerned has allocated the full estimated cost of the work in the  year.  If  the  commitment  for  the  full  estimated  amount  is not  forthcoming  and  the  amount  recommended  by  the  MP  is less  than  the  estimates  for  the  work  and  there  are  no  other sources  from  which  the  deficit  can  be  made  good,  then  the work should not be sanctioned, as in such an eventuality, the project will remain incomplete for want of sufficient funds. The shortfall in the estimated cost vis-à-vis the one recommended by the MP should be intimated to the MP as early possible but not later than 75 days of the receipt of the proposal.
- 3.10  In  case,  recommendations  received  by  the  District  Authority exceeds the entitlement of the MP, priority will be as per the principle of first received to be first considered.
- 3.11   All  works  for  which  recommendations  are  received  in  the office of the District Authority till the last date of the term of the MP are to be executed, provided these are as per norms and within the entitlement of MPLADS funds of the MP.
- 3.12   All recommended eligible works should be sanctioned within 75 days from the date of receipt of the recommendation, after completing all formalities. The District Authority shall, however, inform MPs regarding rejection, if any, within 45 days from  the  date  of  receipt  of  recommendations,  with  reasons thereof.  In  case  of  the  time  limits  mentioned  in  the  section falling within the period of operation of model code of conduct notified  by  the  Election  Commission,  then  such  period  as notified by model code of conduct will not be included in the reckoning of time limits.
- 3.13 The  sanction  letter/order shall stipulate a time  limit for completion  of  the  work  to  the  Implementation  Agency.  The

time  limit  for  completion  of  the  works  should  generally  not exceed one year. In exceptional cases, where the implementation  time  exceeds  one  year,  specific  reasons  for the  same  shall  be  incorporated  in  the  sanction  letter/order. The  sanction  letter/order shall also include a clause  for suitable  action  against  the  Implementation  Agency  in  the event of their failure to complete the work within the stipulated  time  as  per  the  State  Government  Procedure.  A copy  of  the  sanction  letter/order  shall  be  sent  to  the  MP concerned.

- 4.1 The annual entitlement of Rs 5 crore shall be released in two equal  installments  of  Rs  2.5  crore  each,  by  Government  of India directly to the District Authority of the Nodal District of the Member of Parliament concerned.
- 4.2 At the time of the constitution of Lok Sabha, and election of Rajya  Sabha  Member,  the  first  installment  of  Rs.  2.5  crore shall be released to the District Authority without the documents  stipulated  under  para  4.3  below.  The  subsequent installments of the continuing Members of Rajya Saba and Lok Sabha  will  be  released  as  per  eligibility  criteria  indicated  in paragraph 4.3.
- 4.3 The first installment of Rs. 2.5 crore at the time of constitution of  Lok  Sabha  or  election  of  Rajya  sabha  Member  will  be released in the beginning of the financial year.

In the remaining years, the first installment will be released in the  beginning  of  the  financial  year  subject  to  the  condition that the second installment of the previous year was released for  the  MP  concerned  and  also  subject  to  furnishing  of  the provisional utilization Certificate of previous year covering at least  80%  of  the  expenditure  of  the  first  installment  of  the previous year.

The  second  installment  of  the  MPLADS  funds  will  be released  subject  to  the  fulfillment  of  the  following  eligibility criteria:-

- (i) the unsanctioned balance amount available in the account of the District Authority after taking into account the cost of all the work sanctioned is less than Rs.  1 crore;
- the unspent balance of fund of the MP Concerned is less
- (ii) than Rs.2.5 crore; and
- (iii) Utilization Certificate and Audit Certificate of the immediately concluded financial year ending 31 st  March have been furnished by District Authority.

The  above  stipulations  will  be  calculated  from  the  Monthly Progress  Report  for  each  sitting  and  former  MP  term-wise separately.

- 4.4 Funds Non-lapsable: Funds released to the District Authority by the Government of India are non-lapsable. Funds left  in  the  district  can  carried  forward  for  utilization  in  the subsequent  years.  Further,  the  funds  not  released  by  the Government  of  India  in  a  year  will  be  carried  forward  for making  releases  in  the  subsequent  years  subject  to  the fulfillment of criteria stipulated in Paragraph 4.3.
- 4.5 The entitlement of funds of a Member of Parliament for particular year is determined as under :

| Period in the financial year as MP   | Entitlement                   |
|--------------------------------------|-------------------------------|
| Less than 3 months                   | Nil                           |
| Up to 9 months                       | 50% of the annual allocation  |
| More than 9 months                   | 100% of the annual allocation |

Funds will be released to Rajya Sabha/Lok Sabha MPs as per the eligibility criteria mentioned in para 4.3 However, in case of sudden death or resignation of an MP, the works which may have  been  duly  recommended  and  duly  sanctioned  as  per original  eligibility,  not  anticipating  the  above  contingency, would have to be completed (to avoid wastage of Government funds)  irrespective  of  any  reduced  entitlement  noted  above due  to  death/resignation  and  the  new  incoming  MP's  full entitlement  would start a fresh in accordance with the above formula.

- 4.6 If  a  Lok  Sabha  constituency  is  spread  over  more  than  one district,  funds  for  the  constituency  shall  be  released  to  the opted  Nodal  District  authority,  who  will  be  responsible  for transfer of funds to the other districts within the constituency as per the requirement of funds in those districts.

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