MLALAD Fund

Oct. 12, 2024

Recently, the Delhi cabinet approved a 50% hike in MLA-LAD (Local Area Development) funds, increasing the annual allocation to legislators from the current ₹10 crore to ₹15 crore.

About MLALAD Fund:

  • It is modelled on a similar programme for MPs and provides funding for each constituency directly from the government.
  • While MLAs and MPs do not directly receive the funds, they can recommend projects for the scheme.
  • Both MLALAD and MPLAD have their own sets of guidelines but the projects funded by them are usually restricted to “durable infrastructure work”, from repairing roads to building community centres. 
  • Under the scheme, each MLA has the choice to suggest to the Deputy Commissioner of his/her district, the extent of allocations given from year to year, to be taken up his/her constituency. 
  • MLALAD funds are issued every year to MLAs for local development such as repairing roads, and streetlights, developing parks, and laying sewer lines in colonies.
  • The type of work under this scheme should be developmental in nature based on local felt. 
  • The work should be such that it can be completed within one financial year and lead to the creation of durable assets.
  • The amount provided under the MLALAD Scheme is released in the form of a Grant-in-aid for utilisation by the districts.