By IANS,
New Delhi : Bringing cheer to fellow lawmakers, Finance Minister Pranab Mukherjee Friday said the government was hiking their constituency development fund by 150 percent to Rs.5 crore from the existing Rs.2 crore per member from April 1.
But he also warned lawmakers from West Bengal, Tamil Nadu, Kerala, Assam and Puducherry they could start committing funds for developmental projects in their constituency only after the assembly elections are over in May this year.
Replying to a debate on the 2011-12 budget proposals in the Lok Sabha, Mukerjee said he agreed with his fellow lawmakers and had decided to hiked the entitlement for what is officially called the Member of Parliament Local Area Development (MPLAD) fund.
“We have considered the matter and I am happy to announce an increase in allocation under this scheme from Rs.2 crore to Rs.5 crore,” Mukherjee said, amid applause from those in the lower house of parliament.
This hike in the fund — which was started in 1993 — will result in an increased allocation of Rs.2,370 crore for the 2011-12 financial year, he added.
“Please tell your colleagues from the states that are going to polls, they can make commitments on funds utilisation only after the elections are over from end of May,” Mukherjee said.
He also said the report of the government auditor has been received by his ministry and this would be examined by the Parliamentary Public Accounts Committee (PAC) headed by Bharatiya Janata Party (BJP) leader Murli Manohar Joshi.
“Just yesterday, I received the report of Comptroller and Auditor General that has dealt with this subject and made certain recommendations,” he said. He said guidelines can be improved after recommendations from the committee.
Under the scheme, each member of parliament has the choice to suggest to the district collector works to the tune of Rs.2 crore per annum to be taken up in his or her constituency.
A Rajya Sabha member can recommend works in one or more districts in the state from where he or she has been elected.
Thus far, the government has Rs.22,227.25 crore under the scheme since its inception in 1993. Against this, the expenditure incurred is Rs.20,298.71 crore, representing a 91.32-percent utilisation rate, as per data with the government.