Delhi slashes MLA local area development fund to Rs 5 cr
NEW DELHI: In a significant move, the Bharatiya Janata Party (BJP)-led government in Delhi has decided to slash the annual MLA Local Area Development (MLALAD) fund by two-thirds, reducing it from Rs 15 crore to Rs 5 crore per MLA. The decision, confirmed through a notification issued by the Urban Development department, will take effect starting the financial year 2025-26.
The MLALAD fund, which is allocated to each member of the Delhi Legislative Assembly (MLA) for local development projects, had been raised to Rs 15 crore per MLA during the tenure of the Aam Aadmi Party (AAP) government in 2023. This hike, implemented ahead of the assembly elections, was viewed by many as an electoral promise aimed at securing voter support. However, after the BJP’s victory in February this year, the new government has drastically reduced the fund allocation, bringing it back to Rs 5 crore per MLA.
The notification, issued by the Urban Development department, clarifies that the funds will remain untied, meaning MLAs can use them for a variety of purposes.
These include the repair and maintenance of existing infrastructure, as well as the development of capital works in their respective constituencies, with no upper limit on the expenditure for these projects.
Under the previous AAP regime, the fund allocation had varied over the years. Initially set at Rs 4 crore per MLA in 2021-22 and 2022-23, it was increased to Rs 7 crore in 2023-24, before reaching Rs.15 crore in the run-up to the elections. The BJP’s decision to reduce the allocation reflects its commitment to fiscal discipline, according to sources within the party.
The MLALAD scheme itself is part of a broader initiative that mirrors the Member of Parliament Local Area Development (MPLAD) scheme, which provides Rs.5 crore annually to each Member of Parliament (MP) for local development in their constituencies.
However, while MPs receive the funds directly, state MLAs must submit project proposals for approval before the funds are allocated.
The MLALAD funds typically go towards improving infrastructure in constituencies, such as repairing roads, constructing parks, and enhancing drainage systems. The funds were also used during the Covid-19 pandemic to procure personal protective equipment (PPE) and for disaster relief in certain regions.
With this latest move, the Delhi government aims to streamline the allocation of funds and ensure that they are used effectively for essential local development.
