Lok Sabha Question No. 5388 (UNSTARRED), answered on 2026-03-25
Subject: GST Burden on MPLAD
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: Shri Bhausaheb Rajaram Wakchaure

## GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA UNSTARRED QUESTION No.5388 TO BE ANSWERED ON 25.03.2026

## GST BURDEN ON MPLAD

## 5388. SHRI BHAUSAHEB RAJARAM WAKCHAURE:

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

- (a) whether limited Member of Parliament Local Area Development (MPLAD)  funds and the GST  burden  are hindering the basic infrastructure development works in several Lok Sabha Constituencies and if so, the details thereof;
- (b)  whether the Government has conducted any internal review or prepared a report on the issue of MPs receiving only five crore rupees per year as MPLAD funds while in many States of the country an MLA receives the same amount for the development works and if so, the details thereof; and
- (c) whether the Government is contemplating to increase the MPLAD funds and grant them tax-free status to enhance the effectiveness of the scheme and address the disparity and if so, the details thereof?

## ANSWER

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

- (a)  &  (b)  Under  Members  of  Parliament  Local  Area  Development Scheme (MPLADS), each Hon'ble Member of Parliament is entitled for ₹ 5.00 crore annually. Whereas the annual entitlement of Members of Legislative  Assembly Local Area Development Scheme (MLALADS) may  vary  across  States  and  is  under  the  domain  of  respective State/UT Government.

The main objective of the MPLAD Scheme is to enable each Member of  Parliament  to  recommend  developmental  works  based  on  the locally  felt  needs  of  the  people,  with  emphasis  on  the  creation  of durable public assets for the larger public good of society. The works permitted under the MPLAD Scheme cover a wide range of sectors, including public and community buildings, public conveniences,  safety  and  security,  education,  public  health,  and drinking water and sanitation. Line Ministries and Departments also implement specific schemes within these sectors. The objective of the MPLAD Scheme is not to replace or duplicate these initiatives, but to provide last-mile connectivity and bridge viability gaps based on locally identified needs. The  MPLADS  Guidelines,  2023  also  allow  Hon'ble  MPs  to  pool MPLADS funds with individual  or  stand-alone  projects  under  other Central and State Government schemes, as well as with those of local bodies, to recommend permissible works for enhanced impact at the ground level. (c)  The Ministry regularly receives and examines suggestions from various stakeholders, including proposals for revision of fund entitlements, in accordance with the prescribed procedures. GST rates and exemptions are prescribed based on the recommendations of the GST Council, which is a Constitutional body comprising of members from both the Union and State/UT Governments. A request to exempt GST for works carried out under MPLAD funds was placed before the 47th GST Council in its meeting held on 28th-29th June 2022. However, the council did not recommend any change.

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