Published on: February 6, 2023

MPLAD funds

MPLAD funds

Why in news? According to the website of Centre’s Ministry of Statistics & Programme Implementation (MSPI), nearly 70 per cent of the Member of Parliament Local Area Development (MPLAD) funds are used to build community halls


  • It is pointed out that building community halls will ignore other developmental works like roads, toilets and drainages that might serve people better.
  • Building community halls goes against the 2016 guidelines issued by the Union government
  • MPLADS funds can be used for construction of only one community hall in one village as per the directions by central government
  • Installation of rainwater harvesting systems and shelters for skill development centres are among the assets that the guidelines encourage MPs to build.


  • It is a scheme formulated to enables the members of parliaments (MP) to recommend developmental work in their constituencies with an emphasis on creating durable community assets based on locally felt needs.
  • Funds are non-lapsable in nature
  • District Authority would be responsible for overall coordination and supervision of the works under the scheme at the district level and inspect at least 10% of the works under implementation every year.

Implementing agency

  • Initially, this scheme was administered by Ministry of Rural Development, later Ministry of Statistics and Programme Implementation (MOSPI) is implementing it


  • Each MP is allocated 5 crore with annual entitlement is released conditionally in two installments of Rs. 2.5 crore each
  • MoSPI disburses funds to district authorities, not directly to MPs.


  • Elected Members of Rajya Sabha representing the whole of the State, may select works for implementation in one or more district(s) as they may choose.
  • Nominated Members of the Lok Sabha and Rajya Sabha may select works for implementation in one or more districts, anywhere in the country.
  • MPs can also recommend work of up to Rs. 25 lakhs per year outside their constituency or state to promote national unity, harmony and fraternity.
  • MPs can recommend work of up to 25 lakh for Natural Calamity in the state and up to Rs. 1 crore in the country in case of Calamity of Severe Nature (e.g. Tsunami, major cyclones and earthquakes).