Delhi Govt slashes MLA local area fund by two-thirds – from ₹15 crore to ₹5 crore

Chief Minister Rekha Gupta-led Bharatiya Janata Party government in Delhi government has slashed the annual MLA local area fund by two-thirds. The MLA Local Area Development (LAD) Fund issued each year to the Members of Legislislative Assembly (MLA) has been reduced from ₹15 crore to ₹5 crore, according to a recent notification. 

In October last year, the then Aam Aadmi Party (AAP) government had increased the MLA LAD Fund from ₹10 crore to ₹15 crore, months ahead of the assembly polls. The AAP was defeated by the BJP in the polls held in February this year.

“In pursuance of Cabinet decision… the allocation of funds under MLALAD (MLA Local Area Development) scheme has been kept to ₹5 crore per Assembly constituency per year from financial year 2025-26," read an order issued recently by the Urban Development department.

Further, the Council of Ministers directed that this will be an untied fund and could be spent for the approved works of capital nature as well as repairs and maintenance of the assets without a ceiling, the notice read.

A BJP MLA was quoted by news agency PTI saying that the government set aside ₹350 crore under the MLA LAD Fund that was divided into ₹5 crore each among the 70 legislators in Delhi.

In the previous AAP regime, ₹4 crore was provided to each MLA in 2021-22 and 2022-23, which was enhanced to ₹7 crore in 2023-24 and eventually to ₹15 crore last year.

What is MLALAD fund?

MLALAD funds are issued every year to MLAs for local development. The works taken up using this fund includes repairing of roads, developing parks, and laying sewer lines in colonies.

The MLALAD fund is modelled on a similar programme for MPs, where Parliamentarians are provided funds for their constituencies from the Union government.

The MLAs and MPs do not directly receive the funds. They recommend projects for the scheme and get funds.

As an exception during Covid-19 pandemic, the funds were directed towards personal protective equipment such as masks and testing kits. The funds have also been used for natural disaster relief in some states.

The union government allots MPLAD funds to a tune of ₹5 crore a year to each parliamentarian, state governments set their own allocations and guidelines.