Delhi govt reduces MLALAD funds from Rs 15 crore to Rs 5 crore
MLALAD funds are issued every year to MLAs for local development, such as repairing roads, and streetlights, developing parks, and laying sewer lines in colonies

The Delhi government has decided to reduce the local area development funds allocated to MLAs, also known as MLALAD funds, from Rs 15 crore to Rs 5 crore.
“In pursuance of Cabinet decision… the allocation of funds under MLALAD (MLA Local Area Development) scheme has been kept to Rs 5 crore per Assembly constituency per year from financial year 2025-26. Further, the Council of Ministers directed that this will be an untied fund and could be spent for the approved works of capital nature as well as repairs and maintenance of the assets without a ceiling,” read an order issued recently by the Urban Development department.
The previous Aam Aadmi Party regime had hiked MLALAD funds last October by 50%, from Rs 10 crore to Rs 15 crore.
MLALAD funds are issued every year to MLAs for local development, such as repairing roads, and streetlights, developing parks, and laying sewer lines in colonies.
The MLALAD programme, modelled on a similar programme for MPs, provides funding for each constituency directly from the government.
While MLAs and MPs do not directly receive the funds, they can recommend projects for the scheme. Both MLALAD and MPLAD have their own sets of guidelines, but the projects funded by them are usually restricted to “durable infrastructure work”, from repairing roads to building community centres.
During the Covid-19 pandemic, however, the funds were directed towards personal protective equipment such as masks and testing kits. The funds have also been used for natural disaster relief in some states.
While the central programme for MPs allocates Rs 5 crore a year to each parliamentarian, state governments set their own allocations and guidelines.