Relevance: GS II (Governance & Constitution) | Source: The Hindu

1. What is the News?

The MPLADS (Member of Parliament Local Area Development Scheme) has been in the news because a lot of money given to our leaders to develop their areas was left unspent between 2019 and 2024. To fix this and stop corruption, the government has launched new digital rules in 2026.

2. How does this Scheme work?

If you are an IAS officer or an active citizen, you must know how this money flows:

• The Money: The Central Government gives ₹5 crore every year to every single Member of Parliament.
• Savings Do Not Expire: The funds are “non-lapsable.” This simply means if an MP cannot spend the ₹5 crore this year, the remaining money is safely kept and added to next year’s budget.
• The Golden Rule: An MP cannot touch the cash or hire a contractor directly. They can only recommend a project (like building a village road or a drinking water tank). The actual building and payment are done by the District Magistrate (DM) or Collector.

3. Who Can Spend Where?

The rules are very logical and depend on how the leader was chosen:

• Elected Lok Sabha Members: They can only suggest work inside their own election area (constituency).
• Elected Rajya Sabha Members: They can suggest work anywhere inside the State they represent.
• Nominated Members: Since they represent the whole country, they can suggest work anywhere in India.

(Note: To ensure fairness, MPs must suggest a portion of their projects in areas where Scheduled Caste and Scheduled Tribe communities live.)

4. Why do People Criticize It?

• Slow Work: A lot of money simply lies in the bank because projects are delayed.
• Separation of Powers: Some experts say an MP’s real job is to sit in the Parliament and “make laws,” not to act like a local contractor and “build roads.”
• The Fix (Digital Tracking): To ensure projects don’t just exist on paper, the government launched the e-SAKSHI app. Now, every school or road built with this money must have a GPS location and a photograph uploaded online for the public to see.

UPSC Value Box

With reference to the Member of Parliament Local Area Development Scheme, consider the following statements:

1. The funds given under this scheme are non-lapsable in nature.
2. Nominated Members of the Parliament can recommend projects anywhere in the country.
3. The actual implementation and execution of the projects are handled directly by the Member of Parliament.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (a)