21-05-2025
MLA-LAD fund slashed from Rs 15 cr to Rs 5 cr
New Delhi: The BJP-led Delhi government has significantly reduced the annual allocation for the MLA Local Area Development (MLA-LAD) fund from ₹15 crore to ₹5 crore per legislator, according to a recent directive issued by the Urban Development Department.
The decision, formalized through Cabinet Decision No. 3187 dated May 2, 2025, will come into effect from the financial year 2025–26. The move marks a major policy reversal from the previous Aam Aadmi Party (AAP) government, which had increased the fund from ₹10 crore to ₹15 crore in October 2024, just months ahead of the February 2025 Assembly elections. The AAP was defeated by the BJP in those elections.
As per the order, each of Delhi's 70 MLAs will now receive ₹5 crore annually under the MLA-LAD Scheme, amounting to a total outlay of ₹350 crore. Notably, the fund has been designated as an "untied" allocation, meaning it can be used without restriction for both capital works and the repair and maintenance of public assets, provided they fall under approved categories.
A BJP legislator, speaking to the media, stated that the decision reflects the government's commitment to financial discipline and more efficient use of public resources. 'This restructuring will help eliminate unnecessary expenditures and ensure greater transparency in the execution of developmental works,' the MLA said.
Under the AAP administration, MLA funds had seen a steady increase — from ₹4 crore in 2021–22 and 2022–23, to ₹7 crore in 2023–24, and finally to ₹15 crore in 2024–25. The MLA-LAD scheme plays a crucial role in local development, allowing legislators to fund infrastructure, road works, school improvements, and other essential public services in their constituencies.
While the current government has defended the cut as a fiscally responsible move, it remains unclear how the funds saved from this reduction will be reallocated or utilized. Opposition leaders have yet to comment formally on the decision.
