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Delhi govt cuts MLALAD fund to ₹5 crore from ₹15 crore per constituency
Delhi govt cuts MLALAD fund to ₹5 crore from ₹15 crore per constituency

Business Standard

time20-05-2025

  • Politics
  • Business Standard

Delhi govt cuts MLALAD fund to ₹5 crore from ₹15 crore per constituency

The Delhi government, led by the Bharatiya Janata Party (BJP), has slashed the annual MLA Local Area Development (MLALAD) fund to ₹5 crore per constituency. Previously, the fund stood at ₹15 crore after it was hiked by the Aam Aadmi Party (AAP)-led Delhi government in October 2024, news agency PTI reported. The earlier administration had increased the allocation by 50 per cent—from ₹10 crore to ₹15 crore. Citing a recent order issued by the Urban Development Department, the PTI report said the new allocation has been fixed at ₹5 crore per Assembly constituency per year. The cabinet decision was made on 2 May. 'In pursuance of Cabinet Decision No. 3187 dated 02.05.2025, the allocation of funds under the MLALAD Scheme has been kept at ₹5 crore per Assembly constituency per year from the financial year 2025–26 onwards,' the order stated. Citing the Council of Ministers, the order further added that this would be an untied fund and could be used for the repair and maintenance of public assets without a ceiling. It may also be utilised for capital projects approved under the scheme. A BJP MLA confirmed that ₹350 crore has been allocated under the MLALAD Scheme and has been distributed equally among the 70 MLAs in Delhi. What is the MLALAD fund? The MLALAD fund is issued annually by the state government, enabling Members of the Legislative Assembly (MLAs) to suggest development projects for their constituencies. Commonly funded works include road repairs, construction of community spaces and parks, and other local infrastructure. The scheme is modelled after the central government's MPLAD (Member of Parliament Local Area Development) scheme. While the funds are not disbursed directly to MLAs or MPs, elected representatives can recommend specific projects to be undertaken under defined guidelines. According to a report in The Indian Express, the funds can only be used for 'durable infrastructure work,' such as roads and community halls. During the Covid-19 pandemic, however, they were also used to procure personal protective equipment, including masks and testing kits. (with PTI inputs)

Delhi government reduces local area fund for MLAs from ₹15 crore to ₹5 crore
Delhi government reduces local area fund for MLAs from ₹15 crore to ₹5 crore

Hindustan Times

time20-05-2025

  • Politics
  • Hindustan Times

Delhi government reduces local area fund for MLAs from ₹15 crore to ₹5 crore

The BJP-led Delhi government has reduced the annual MLA Local Area Development (LAD) Fund from ₹15 crore to ₹5 crore, officials have said. In October last year, the previous AAP government in Delhi enhanced the MLA LAD Fund from ₹10 crore to ₹15 crore, months ahead of the assembly polls. The AAP was defeated by the BJP in the polls held in February this year. According to a recent order issued by Urban Development Department of the Delhi government, the MLA LAD Fund as per a cabinet decision on May 2, has been kept at ₹5 crore per assembly constituency per year. "In pursuance of Cabinet Decision No. 3187 dated 02.05.2025, the allocation of fund under MLALAD Scheme has been kept at ₹5 crore per assembly constituency per year from financial year 2025-26 onwards," said the order. Further, the Council of Ministers has directed that this will be an untied fund and could be spent for the approved works of capital nature as well as repairs and maintenance of the assets without a ceiling, added the order. A BJP MLA said that the government set aside ₹350 crore under the MLA LAD Fund that was divided into ₹5 crore each among the 70 legislators in Delhi. In the previous AAP regime, ₹4 crore was provided to each MLA in 2021-22 and 2022-23, which was enhanced to ₹7 crore in 2023-24.

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