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Many MPs not keen to donate funds to PM CARES

By Archis Mohan
April 02, 2020 13:42 IST
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Many feel that the money from their MPLADS should go directly to a district hospital in their respective constituencies rather than a central fund like PM CARES.

Archis Mohan reports.


IMAGE: Rajya Sabha Chairman M Venkaiah Naidu had asked MPs to contribute Rs 1 crore from their MPLADS to the PM CARES Fund. Photograph: Arun Sharma/PTI Photo

Questions about the need for a new PM CARES -- Prime Minister’s Citizen Assistance and Relief in Emergency Situations -- Fund notwithstanding, nearly half of our MPs (members of Parliament) have until now consented to allocate Rs 1 crore from their respective MPLADS (Members of Parliament Local Area Development Scheme) to the recently set up PM CARES Fund to fight COVID-19.


The government is hopeful that more MPs will come forward in the days to come, and Bharatiya Janata Party leaders have reached out to not just their party MPs but those from other friendly parties as well to give their consent to allocate money to the PM CARES Fund.

Significantly, as of March 4, 2020, as much as Rs 5,275.24 crore was unspent in the MPLADS funds.

The PM CARES was instituted earlier this week to provide relief for COVID-19.

The Congress and other opposition parties have questioned the need for setting up the PM CARES Fund when there already exists the PM National Relief Fund (PMNRF).

According to the PM’s website, PMNRF had a corpus of Rs 3,800 crore at the end of 2018-19 fiscal.

Until Tuesday evening, only 320 of the 779 MPs (of the total 788) had consented that Rs 1 crore should be allocated to PM CARES Fund from their respective MPLADS.

Sources in Parliament, however, said dozens of MPs sent their consent on Wednesday as well.

Earlier this week, Rajya Sabha Chairman M Venkaiah Naidu and Lok Sabha Speaker Om Birla had asked MPs to contribute Rs 1 crore from their MPLADS to the PM CARES Fund.

They had also asked MPs to contribute a month’s salary to the PM CARES Fund.

"This fund will enable micro donations as a result of which a large number of people will be able to contribute with the smallest of denominations," Naidu said in a letter sent to Rajya Sabha MPs.

The ministry of statistics and programme implementation (MOSPI) is responsible for overseeing the MPLAD Scheme, which is implemented by district authorities with the MPs recommending the public projects to be taken up.

With its circulars on March 24 and 28, the MOSPI tweaked existing MPLADS rules to enable funds under it to be allocated for fighting COVID-19.

In its March 24 circular, the MOSPI allowed district authorities to use MPLADS funds for 'medical testing, screening and other facilities required to detect and contain COVID-19'.

It allowed a 'one-time dispensation' to district authorities to purchase from MPLADS funds items not costing less than Rs 5 lakh for government dispensaries and hospitals, such as ICU ventilators, coronavirus testing kits and PPE (personal protection equipment) kits.

It also instructed the district authorities that this expenditure shall be restricted to the end of fiscal year 2020-21, and not be allowed to roll over to 2021-22.

However, in its circular on March 28, MOSPI asked MPs to recommend the release of funds to a central government pool for fighting COVID-19.

It asked MPs to give consent for release of funds from the first instalment they will receive in 2020-21.

The ministry stated in the circular that the MPs should submit consent for this money to be given to 'such Fund/central government poor or head of account as may be decided by the central government for managing COVID-19 in the country'.

Each year under MPLADS, MPs receive Rs 5 crore in two instalments of Rs 2.5 crore each.

Funds under MPLADS are non-lapsable. Lok Sabha MPs have to recommend to the district authorities projects in their Lok Sabha constituencies, while Rajya Sabha MPs have to spend it in the state that has elected them to the House.

Under the MPLADS rules, an MP can donate a maximum of Rs 1 crore to a trust or a public fund.

The March 28 MOSPI circular also provided for 'one-time exemption in furnishing of utilisation certificate' for release of the first instalment, and exemption from furnishing of audit certificate for release of the second instalment.

Several MPs, however, are not keen to contribute to PM CARES Fund, and would rather follow the March 24 MOSPI order where the money from their MPLADS goes directly to a district hospital of their respective constituencies rather than to a central fund like PM CARES.

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Archis Mohan in New Delhi
Source: source
The War Against Coronavirus

The War Against Coronavirus