Overview

• The Delhi cabinet formalized the reduction of MLA Local Area Development (MLALAD) funds from ₹15 crore to ₹5 crore per constituency starting FY2025-26.
• The new untied fund structure allows spending on both capital projects and repairs without a ceiling, offering MLAs greater flexibility in resource allocation.
• AAP leaders criticized the move, arguing that ₹5 crore is insufficient for basic infrastructure needs, particularly given high inflation rates.
• BJP representatives defended the decision as fiscally responsible, noting that the total allocation over five years may exceed what was provided under the previous AAP government.
• The MLALAD scheme, modeled on the central MPLAD program, has historically seen funding adjustments tied to electoral cycles, reflecting its political sensitivity.