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LATEST NEWS UPDATES | Rich states lag in use of MP funds by Mahendra Kumar Singh

Rich states lag in use of MP funds by Mahendra Kumar Singh

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published Published on Aug 9, 2010   modified Modified on Aug 9, 2010


Delhi MPs have failed to make optimum use of funds under MP Local Area Development (MPLAD) scheme, clocking up a utilisation rate of just 86.93%, well below the national average of 90.32%.

According to a report of the ministry of statistics and programme implementation, Delhi was placed among laggard states when it came to utilisation of funds till July this year.

Since the MPLAD scheme was launched in 1993, total funds released for the Capital was Rs 233 crore, while the actual expenditure was Rs 201.74 crore.

Chandigarh topped the list in utilisation of funds by spending 99.67% of what it got under the scheme.

A review meeting called by minister of state Sriprakash Jaiswal highlighted that developed states like Kerala lagged behind less developed states on utilisation of MPLAD funds. A report said Kerala, ranked 20th on utilisation of funds, had Rs 108.94 crore unspent.

Gujarat, with unspent funds of Rs 107.54 crore, was ranked 14th while Maharashtra with unspent Rs 235.89 crore was ranked 19th. Haryana was also below the national average, stuck at 89% placing it at 25th rank.

While top ranks were cornered by small states of north-east, Madhya Pradesh, with unspent Rs 113.20 crore, came 9th rank with 92.35% of utilisation. Punjab managed 10th rank with 92.10% utilisation while Rajasthan with unspent Rs 93.33 crore ranked 12th.

UP and Bihar reported 88.92% and 87.15% utilisation respectively. While UP had an unspent amount of Rs 384.74 crore, Bihar had Rs 223.47 crore remaining under the scheme.

The report also highlighted major illegalities and diversion of funds in the scheme. It was found that in Chittur, funds were illegally used to construct a commercial complex instead of a community hall while in Adilabad, a library building was being used as a gym-cum-shop.

It was revealed that in Vadodara, work worth Rs 6.80 lakh was carried out from some other source and showed as completed under MPLAD. In Banaskantha, computers bought under the scheme were found to be missing. Assets were shown as created on private land in Shimla while in Kathua (J&K), MPLAD funds were kept in a private bank account.

While it was found that two Qualis vehicles were bought in Srinagar for J&K Cricket Association, several works costing Rs 85 lakh in Indore was sanctioned for MP Cricket Association. In Etah, Rs 25 lakh was sanctioned twice to an inter college and computers purchased for academic institutions were used for commercial purposes. In Sitapur (UP), funds were shown as used to build a boundary wall of a school while there was no such actual construction.

Even as the UPA government is considering raising the money that MPs spend in their constituencies to Rs 5 crore every year from the existing Rs 2 crore, Jaiswal said, "The latest report says it is the best scheme. But, I don't say that there is no corruption or misuse of funds under the scheme."

An amount of Rs 21,631.25 crore has been released under the scheme since its launch in 1993, of which Rs 19,536.60 crore was utilised till July 27 this year.

The ministry said about 13.39 lakh works had been recommended, of which 11.89 lakh were sanctioned and about 10.88 lakh projects were completed till July 27 last.

 


The Times of India, 9 August, 2010, http://timesofindia.indiatimes.com/india/Rich-states-lag-in-use-of-MP-funds/articleshow/6276880.cms


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