Lok Sabha Question No. 580 (UNSTARRED), answered on 2016-07-20
Subject: Utilization of MPLAD Funds
Ministry: STATISTICS AND PROGRAMME IMPLEMENTATION
Asked by: SRINIVAS KESINENI, C. MAHENDRAN, NEELAM SONKER, (ADV.) JOICE GEORGE

## GOVERNMENT OF INDIA

## MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION

## LOK SABHA

## UNSTARRED QUESTION NO. 580

ANSWERED ON WEDNESDAY, THE 20 TH  JULY, 2016

## UTILIZATION OF MPLAD FUNDS

580.   SHRI KESINENI NANI: SHRI C. MAHENDRAN: SHRIMATI NEELAM SONKER: ADV. JOICE GEORGE:

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

- (a)  whether  the  previous  fiscal  and  the  current  fiscal  have seen MPs utilizing their MPLAD funds to the maximum;
- (b)  if so, the details thereof;
- (c)  whether a large number of MPLAD funds are still unutilized for the same period;
- (d)  if so, the details thereof;
- (e)  whether  the  Government  has  taken  any  steps  to  ensure that the asset quality of projects funded under MPLADS is high and if so, details thereof; and
- (f)   the present status of the proposal to increase allocation of funds under MPLADS?

## ANSWER

MINISTER  FOR  STATISTICS  AND  PROGRAMME  IMPLEMENTATION

[SHRI  D.V. SADANANDA GOWDA]

(a) to (d): The funds under the Members of Parliament Local Area Development Scheme (MPLADS) are non-lapsable, both at the end of the Union Government and at the end of the District Authority i.e. the  unspent  balances  of  a  particular  year  are  utilized  in  the subsequent  year  (s).  In  view  of  the  nature  and  dynamics  of  the scheme, the unutilized balances, which also include interest accrued, are bound to exist at any given point of time and utilization of MPLADS funds in the same financial year is not feasible.

The position of funds released and utilized during 2015-16 and 201617 (up to 30.06.2016) under the MPLADS is as under:-

Rs. in crore

| Year                       |   Released |   Utilized |   Unspent Balance |
|----------------------------|------------|------------|-------------------|
| 2015-16                    |       3502 |    3628.01 |           4947.13 |
| 2016-17 (up to 30.06.2016) |        858 |     997.5  |           4963.77 |

Note: (i)  The  figures  are  based  on  the  latest  monthly  progress  reports  received from the Nodal District Authorities.

- (ii)  There  is  no  incongruity  in  the  figures  since  the  funds  are  non-lapsable  and unspent balances as well as interest are utilized in the subsequent year(s).
- (iii) Unspent balance figures are net cumulative amount available with the Nodal Districts as on 31.03.2016 for the year 2015-16 and as on 30.06.2016 for the year 2016-17.
- (e): Implementation  of  the  MPLADS  in  the  field  is  undertaken  by the  District  Authorities  as  per  the  State  Government's  technical, administrative and financial rules.

The  monitoring  mechanisms,  wherein  the  roles  of  the  Central Government, State Governments, District Authorities and Implementing Agencies are laid down, have been duly prescribed in the  Guidelines  on  MPLADS.  The  Guidelines  are  available  in  the public  domain,  including  on  the  official  website  of  Ministry  of Statistics and Programme Implementation (www.mospi.nic.in).

The Ministry of Statistics and Programme Implementation regularly reviews  the  implementation  of  the  MPLADS  through  national-level review meetings with State Government/District officers and visits to States/Districts. The Ministry also undertakes third party physical monitoring  of  the  MPLADS  works  in  selected  districts  through independent  agencies.    In  addition,  the  Comptroller  and  Auditor General (C&AG) of India conducts periodic Performance Audit of the MPLADS.

- (f): Hon'ble Lok Sabha Committee on MPLADS in its sitting held on 02.07.2013 had recommended to increase the annual allocation per Member of Parliament from rupees 5 crore to rupees 10 crore.

Hon'ble Deputy Speaker Lok Sabha (16 th  Lok Sabha)  and Chairman, Lok Sabha Committee on MPLADS vide letter dated 25.02.2015 had requested  for  increase  of  annual  allocation  of  MPLADS  funds  per Member of Parliament to Rs. 25 crore. The  matter  was  referred  to  Ministry  of  Finance,  who  gave  their comments on 13.06.2016: While the increase from Rs. 2 crore to Rs. 5 crore (2½ times) was after 12 years, the present request for 5 fold increase is after only 5 years. The enhancement requested for would entail a five fold increase resulting  in  annual  budgetary  allocations  totaling  Rs.19750  crore (against Rs.3950 crore at present).  It would be difficult to make such provisions.  The  audit  reports,  results  of  evaluation  of  the  scheme, the utilization of funds released till now for the scheme, the unspent balances  lying  in  the  field,  etc.  have  to  be  carefully  considered, while keeping in view the constraints in the availability of resources with the Central Government. At  present  there  is  no  proposal  in  this  Ministry  to  increase  the

annual allocation of MPLADS funds.

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