Finance minister Pranab Mukherjee today announced a bonanaza for parliamentarians with a steep hike in the constituency fund of members of parliament that will be more than doubled to over Rs5 crore per year from 1April.
As many as 797 Lok Sabha and Rajya Sabha MPS will get Rs5 crore under the Member of Parliament Local Area Development (MPLAD) scheme against the present allocation of Rs2 crore.
The announcement came during a debate on the 2011-12 general budget.
"Honourable members cutting across party lines have been demanding an increase in the allocation under the MPLAD Scheme. We have considered the matter and I am happy to announce an increase in allocation of Rs2 crore to Rs5 crore," Mukherjee told the Lok Sabha.
He said this would result in the additional allocation of Rs2,370 crore per year.
Mukherjee however said, "I have to add here that the C&AG (Comptroller and Auditor General) Report on the implementation of MPLAD Scheme has just been received and will be laid on the table of the House shortly. Concerns expressed therein will be addressed while formulating the guidelines for enhanced allocation," he said.