However, the MPs crave for more funds. But Minister of State for Planning and Programme Implementation Arun Shourie and his father H D Shourie have taken up cudgels against the demand.
His father H D Shourie, who founded Common Cause to help ordinary people in distress, moved the Supreme Court last year. In public interest litigation filed in the court, he said the Members of Parliament Local Area Development Scheme -- MPLADS -- should be scrapped because MPs misuse and underutilise government funds.
"There are glaring instances of misuse by MPs ever since the scheme was launched. It is a tragedy that MPs who proclaim political sermons during the times of elections forget their constituents when lots of money are given to them on a silver platter," H D Shourie points out.
He says ministry records and the Comptroller and Auditor General reports have revealed several instances of irregularities and misuse of funds by MPs. "But the government continues with the scheme because it does not want to anger MPs," H D Shourie says, adding, "it is again a question of politics."
In March last year, the government blocked funds worth Rs 650 million for 56 MPs from West Bengal for not following the guidelines and failing to submit usage certificates. The MPs included fiery Trinamul Congress president and Railways Minister Mamata Banerjee. The minister failed to submit projects to the government.
Last year, Communist Party of India leader Gurudas Dasgupta used part of the funds allotted to him for the Nandan complex. Dasgupta claims Nandan was a developmental project, but the central government objected, saying the rules prohibit using the funds for cultural purposes.
"It is a socio-economic project for the people of my constituency. I have no idea why the ministry objected to this," Dasgupta says. "MPLADS suffers from such stupid rules. If MPs are unable to use the funds for a common cause, it is because of the guidelines are not proper," he argues.
But Dasgupta's party colleague, CPI General Secretary A B Bardhan says there is corruption in the use of the funds by several MPs.
"Isn't it an irony that many constituencies in India remain backward and poor though every year each MP is alloted Rs 20 million for development work?" he asks.
"MPs indulge in corrupt practices to siphon off the money. The government should either scrape the scheme or modify it," Bardhan recommends.
Despite the irregularities in the scheme, the MPs want more funds. Recently, the parliamentary standing committee on MPLADS wrote a letter to Arun Shourie, arguing that the amount be raised to Rs 40 million. Shourie turned down the request, and asked the Planning Commission to review the scheme.
Bolla Bulli Ramaiah, the committee's chairman and Telugu Desam Party MP from Eluru, says "Rs 20 million per year is a pittance for carrying out development work in the constituencies. It has to be sizably increased if roads are to be built, canals dug and drinking water pipes to be set up."
About charges of corruption in the scheme, Ramaiah claims the fault often lies with the district administration, and not with the MPs. "Often, the administration is lethargic in carrying out the projects the MPs want. That is the real cause behind under-utilisation of funds," he adds.
Other MPs agree with Ramaiah. "Shourie does not understand the pulse of the people in our constituency because he has never contested an election. So how can he insist that the fund should not be hiked?" asks T M Selvaganapathi, the All India Anna Dravida Munnetra Kazhagam MP from Salem.
BJP Rajya Sabha MP S S Ahluwalia demands that the amount be hiked to at least Rs 80 million. "Many constituencies in India are large. So MPs need lots of money to undertake developmental projects," he claims.
But the Shouries are determined to fight to cleanse the scheme. While Shourie senior has decided to mobilise a public campaign against MPLADS, Shourie junior is trying to convince the prime minister and finance minister that the scheme is a flop.
So when Parliamentary Affairs Minister Pramod Mahajan took up the MPs's demands with Arun Shourie, he wrote back: 'In view of the low rate of utilisation of funds by the MPs and in view of the dire conditions of governmental finances, there really is no justification to seek an enhancement of the allocations for the MPLADS.'
But it is unlikely the Shouries will succeed because the National Democratic Alliance coalition government needs to keep MPs happy.
So don't be surprised if the Vajpayee government grants the MPs a New Year gift by doubling the Rs 20 million constituency development fund to Rs 40 million.
Illustration: Lynette Menezes
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