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Delhi govt raises MLA fund by 50% to Rs 15 crore

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NEW DELHI: Overruling the objections raised by the finance, planning, and urban development departments of Delhi govt, chief minister Atishi directed the officials to issue the notification of the increase in the annual amount for the MLA Local Area Development (MLALAD) fund from Rs 10 crore to Rs 15 crore per assembly constituency .

While the departments cited insufficient funds in the govt exchequer and poor utilisation of the allocated amount in previous financial years, Atishi stated in her note on the file that the council of ministers had already taken a decision and appropriate provision would be made in the revised estimate.

The decision to enhance the MLALAD fund by 50% was made in the cabinet meeting chaired by Atishi last week. Though the cabinet note was moved to increase the fund to Rs 12 crore and the same was circulated to the finance, planning, and law and justice departments for comments before urban development minister Saurabh Bharadwaj gave his approval, it was further enhanced to Rs 15 crore by the chief minister.

While the finance department did not give its concurrence to the proposal citing a difficult financial situation, the planning department also raised several objections, including the “substantially lower” allocations in various states.

The UD department mentioned that till Oct 15, only Rs 150 crore was utilised from the corpus against the budgetary allocation of Rs 400 crore for MLALAD, and n o analysis was available to ascertain the low expenditure. The additional chief secretary of the UD department also pointed out that the average amount of only Rs 1.25 crore per constituency was used in 2020-21, which increased to Rs 3.19 crore in 2021-22, Rs 3.17 crore in 2022-23, and fell to Rs 2.27 crore in 2023-24. In the current fiscal, the average amo unt spent for each constituency stood at Rs 2.14 crore.

The official also pointed out that after the increase in the MLALAD fund to Rs 15 crore, the allocation per MLA in five years would go up to Rs 30 crore, and a total fund of Rs 2,100 crore would be required in five years (since the fund is not lapsable). He added that of this amount, nearly Rs 693.8 crore was allocated so far, and to meet the enhanced allocation, an amount of Rs 1,007 crore would be required. “It is quite possible that all MLAs may pursue vigorously for works to be approved and undergo executions for the balance amount….(since) the ticket size of the works being small, it is quite possible that a substantial chunk of the work is completed within 2-3 months. Therefore, (a) full allocation of Rs 1,007 crore is essential to back the govt order to be issued for enhanced allocation of Rs 15 crore,” the official stated in his note.

“It is the duty of the department to clearly point out that any govt order having financial implications is to be issued with the full backing of financial provision made through budgetary allocation or clear commitment from the finance department to meet the enhanced expenditure. Otherwise, the govt order will be considered bad,” he claimed.
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