NEW DELHI: Three months after its formation, the BJP government in Delhi has reduced the annual MLA Local Area Development (LAD) Fund from Rs.15 crore to Rs. 5 crore, igniting a sharp reaction from the Opposition AAP. The previous AAP government in October last year had increased the MLALAD Fund from Rs. 10 crore to Rs.15 crore. A sum of Rs. 4 crore was provided to each MLA in 2021-22 and 2022-23, and it was enhanced to Rs. 7 crore in 2023-24.
According to an order by the Urban Development Department, the MLALAD Fund has been kept at Rs 5 crore/assembly constituency per year.
“In pursuance of Cabinet Decision No. 3187 dated 02.05.2025, the allocation of funds under the MLALAD Scheme has been kept at Rs. 5 crore per assembly constituency per year from financial year 2025-26 onwards,” said the order.
The ministers have been directed that it 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.
A BJP MLA said that the government set aside Rs. 350 crore under the MLALAD Fund that was divided into Rs. 5 crore each among 70 legislators in Delhi, AAP, however, said that the BJP government has slashed the MLALAD Fund from Rs. 15 crore to Rs. 5 crore, dealing a blow to development works.
AAP Delhi chief Saurabh Bharadwaj hit out at the BJP, saying the party has betrayed Delhiites by cutting the fund meant for their welfare.
“In Delhi, each MLA used to receive Rs. 15 crore annually under the AAP government as part of the MLALAD Fund. This fund is used for urgent, local development works that improve people’s daily lives. If a road is broken, a sewer line needed, lights missing in a colony, or parks need repair, MLAs use discretionary funds to address these issues,” he said.