NEW DELHI: The BJP-led Delhi government has announced a significant reduction in the annual Local Area Development (LAD) Fund for Members of the Legislative Assembly (MLAs), decreasing it from ₹15 crore to ₹5 crore, officials confirmed on Monday.
This decision follows a move by the previous Aam Aadmi Party (AAP) government, which had increased the MLA LAD Fund from ₹10 crore to ₹15 crore just months before the assembly elections. The AAP was subsequently defeated by the BJP in the elections held in February of this year.
According to a recent order issued by the Urban Development Department of the Delhi government, the revised MLA LAD Fund allocation, as per a cabinet decision made on May 2, will now be set at ₹5 crore per assembly constituency annually.
“In accordance with Cabinet Decision No. 3187 dated May 2, 2025, the allocation of funds under the MLALAD Scheme has been established at ₹5 crore per assembly constituency per year, effective from the financial year 2025-26,” the order stated.
Additionally, the Council of Ministers has specified that this fund will be untied, allowing for expenditure on approved capital projects as well as repairs and maintenance of existing assets without any imposed ceiling.
A BJP MLA noted that the government has allocated a total of ₹350 crore under the MLA LAD Fund, which will be distributed as ₹5 crore to each of the 70 legislators in Delhi.
In contrast, during the previous AAP administration, each MLA received ₹4 crore for the years 2021-22 and 2022-23, which was subsequently increased to ₹7 crore for the fiscal year 2023-24.
