NEW DELHI: Congress Rajya Sabha MP Pramod Tiwari on Wednesday called for a significant increase in funding under the Members of Parliament Local Area Development Scheme (MPLADS) and urged the removal of Goods and Services Tax (GST) on projects executed through it, arguing that the current annual allocation is inadequate amid rising material costs.
He stated that the present allocation of Rs 5 crore per MP each year is “quite less” and should be raised to at least Rs 20 crore, alongside making MPLADS works GST-free.
Under MPLADS, each MP is granted Rs 5 crore annually to recommend development initiatives aimed at creating durable community assets, including infrastructure, healthcare, and educational facilities.
Speaking during Zero Hour in the Rajya Sabha, Tiwari described the scheme as a highly effective mechanism for MPs to address the fundamental needs of their constituencies.
However, he emphasised that the allocation has remained unchanged for several years despite escalating development costs.
“Under this scheme Rs 5 crore are allocated to each MP annually. However, there has been no increase in allocation over the past several years, even as the cost of developmental works has multiplied,” Tiwari said.
He pointed out that the prices of essential inputs such as cement, steel and labour have risen sharply. At the same time, constituency populations have grown, with many now exceeding 20 lakh residents.
Citing inflation in commodities and raw materials, Tiwari maintained that Rs 5 crore is “quite less” when considered on a per capita basis.
He further added that works which are carried out under MPLADS typically incur an 18 per cent GST, effectively reducing the usable amount to Rs 4.10 crore, with approximately Rs 90 lakh going towards tax.
“Taking into account inflation (price rise) and the increasing needs of electoral constituencies, the annual allocation under this scheme should be hiked to at least Rs 20 crore,” he added.
He also urged Rajya Sabha Chairman C. P. Radhakrishnan to convene an all-party meeting to deliberate on the matter, reiterating that GST on MPLADS-funded works should be abolished, making them “GST-free”.