MPs cannot use interest on MPLADS funds for development works; Centre revises norms

New Delhi, May 09: Parliamentarians cannot utilise interest accrued on MPLADS funds for development works with the Centre revising the norms for utilisation of money under various central sector schemes.

According to the revised procedure for flow of funds under the CSS, including MPLADS, of the Finance Ministry, all interest earnings should be compulsorily remitted to the Consolidated Fund of India.

The revised procedures have been intimated to MPs by Lok Sabha and Rajya Sabha secretariats.

CPI(M) MP John Brittas has strongly objected to the new procedures and urged Finance Minister Nirmala Sitharaman to roll back the decision.

The members should be allowed to continue recommending "works for the interest amount accrued for the MPLADS funds disbursed to them every year by retaining the procedure in vogue as such," Brittas said in a letter to the minister on Monday.

Copies of the letter were also sent to the Rajya Sabha Chairman, Lok Sabha Speaker and the Minister of Statistics and Programme Implementation.

"It simply shows how the government takes unilateral and arbitrary decisions without discussing with the stakeholders. The finance ministry has issued the memorandum on MPLADS without discussing with the nodal ministry or the Parliament," Brittas told PTI.

Under the Members of Parliament Local Area Development Scheme (MPLADS), each MP can recommend development programmes involving expenditure of Rs 5 crore every year in their constituencies.

In view of the COVID-19 pandemic, MPLADS was suspended from April 2020 to November last year.