Govt eyes over Rs 5K-cr unspent MPLADS funds amid coronavirus outbreak


Despite questions about the need for a new PM CARES fund, so far almost half of our delegates (parliamentarians) have agreed to allocate 1 crore of their respective MPLADS to the new PM CARES fund to fight COVID-19.


The government hopes that more MPs will appear in the coming days and the leaders of the Bharatiya Janata Party (BDP) have approached not only MPs from their party, but also members of other friendly parties to agree to give money to the Prime Minister’s car fund.


It should be noted that the MPLADS or MP Local Area Development Scheme has been extended to 4 years. From March 2020 it had no Rs. 5,275.24 (see box).

The Prime Minister of CARES – the Citizen and Emergency Relief Fund – was created earlier this week to support Kovid-19.


Congress and other opposition parties have questioned the need to create a CARES fund for the Prime Minister, although a National Assistance Fund for the Prime Minister (NPFM) already exists. According to the PMNRF website, the PMNRF household portfolio amounted to Rs.3800 at the end of 2018-19.


By Tuesday evening, only 320 of the 779 MPs (out of a total of 788) had approved the allocation of one rupee from the respective MPLADS to the PM CARES fund. However, sources in Parliament have reported that dozens of Members of Parliament also submitted their approvals on Wednesday.


Earlier this week, President Raya Sabhi asked M. Venkaya Naidu and speaker Loc Sabhi to donate a penny of their MPs to the PM Cars Foundation. They also asked Members of the European Parliament to pay a monthly salary to the PM CARES Fund.


This fund will enable micro-donations, enabling a large number of people to donate the smallest denominations, Naidoo said in a letter to Rajya Sabha.


The Ministry of Statistics and Programme Implementation (MSPI) is responsible for overseeing the MPLAD programme, which is implemented by the district authorities, and the MPs recommend government projects for adoption.


With his circulars 24 and 28. On 3 March, MOPPI amended the existing MPLADS rules to allow the allocation of funds for the fight against Kovid-19.


In his circular of 24. On 3 March MOSDI authorised the district authorities to use MPLADS for medical tests, examinations and other means necessary for the detection and containment of Kovid-19.


This has enabled the district authorities to purchase items of at least Rs.5 for pharmacies and public hospitals through a one-time distribution, such as fans, coronavirus test kits and PPE (personal protective equipment) kits from the MPLADS Foundation. It also instructed the district authorities to limit this expenditure to the end of the financial year 2020-21 and to avoid delaying it until 2021-22.

In his circular of 28. However, on 3 March, IMMS asked Members of the European Parliament to recommend releasing funds for the COVID-19 Central Government Countermeasures Fund.


It advocated exempting Members of the European Parliament from the first contribution they will receive in 2020-21.



The ministry said in a circular that MPs should give their consent for the money to be given to a fund/central government that is so bad or to an accountant that is so bad that the central government may decide to manage Covid-19 in the country.


Each year, the MPLADS MP receives 5 rupees at 2.5 crores each. Funds within MPLADS cannot be reduced. The Lok Sabhi delegates must recommend Lok Sabhi’s projects to the district authorities in their constituencies, while the Raja Sabhi delegates must carry them out in the state that elected them to the House of Representatives. According to the rules of the MPLADS, a member of parliament may make a donation of up to 1 rupee to a trust or public fund.


The MOSPI Circular of 28. March also provided for a single derogation from the presentation of a certificate of use for the first part and a derogation from the presentation of an audit certificate for the second part.


However, some MPs are not interested in contributing to the PM CARE Fund and prefer to follow the WIPO sequence of 24. It will be followed by a new fund, the MPLADS, which will channel the money from its MPLADS directly to the district hospital in its respective constituencies, rather than to a central fund such as PM CARES.