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MLA development funds: 250 per cent hike proposed by government

In a bid to ensure that the financial crunch does not affect the development works carried out in the areas, the Delhi Cabinet on Monday approved a 250 per cent hike in MLA Local Area Development (LAD

In a bid to ensure that the financial crunch does not affect the development works carried out in the areas, the Delhi Cabinet on Monday approved a 250 per cent hike in MLA Local Area Development (LAD) funds for the current financial year, enhancing it to Rs14 crore from the existing Rs 4 crore.

“Out of Rs 4 crore MLALAD fund, Rs 1 crore is allocated for executing works pertaining to the Delhi Jal Board every year as per the rule. Rest of the funds are also fixed for some other works following which MLAs do not have more fund left to carry out development works in their constituencies. In view of this, government has proposed to provide one-time additional allocation of Rs 10 crore for each MLA in the current financial year,” the official said.

A senior Delhi government official said that the AAP government has sent the proposal to the Centre for its prior approval. If the Central government gives its nod, the proposal will be tabled in the Delhi Assembly where the Aam Aadmi Party has an overwhelming majority with 67 MLAs.

In 2011, the Sheila Dikshit government had increased MLALAD fund from Rs 2 crore to Rs 4 crore for carrying out development works in Delhi. However, the current proposed hike will only be for the ongoing financial year.

The official also said that if the Centre gives its nod, the AAP government will allocate Rs 700 crore to all 70 legislators. According to officials, Rs 280 crore meant for MLA Local Area Development (LAD) funds has been already disbursed by the AAP government and this Rs 700 crore would be in addition to that.

If the government increases Rs 10 crore for each MLA, it would be perhaps the highest in the country. The officer said that all the three MCDs have “failed” in effectively carrying out development works for want of adequate funds.

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