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Delhi Government Cuts MLA Development Fund from ₹15 Crore to ₹5 Crore

May 20, 2025 5:18 PM
Rekha Gupta Delhi Cm

Delhi Government Cuts MLA Development Fund to ₹5 Crore

The Delhi BJP government has made a big decision. It has reduced the MLA Local Area Development (MLA-LAD) fund from ₹15 crore to ₹5 crore per year. This move comes after the Aam Aadmi Party (AAP) had increased the fund just before elections.

Chief Minister Rekha Gupta’s team says this step will stop wasteful spending. It will also make development work more transparent. The Urban Development Department issued an order confirming the change. The cabinet approved this decision on May 2, 2025.

Each of Delhi’s 70 MLAs will now receive ₹5 crore for local projects. Earlier, they were getting ₹15 crore. The government has set aside a total of ₹350 crore for this purpose.

This fund is flexible. MLAs can use it for repairing roads, improving schools, or upgrading other public services. There are no strict limits on how they spend it.

A BJP legislator said the move will make sure public money is used better. “We want development to be smart and clean,” the MLA added.

The AAP, however, is not happy. Party leaders claim the cut will hurt grassroots development. They believe the previous increase helped meet local needs.

The fund cut has started a debate in Delhi politics. Some see it as a cost-saving measure. Others call it a political move against the AAP.


Why the Delhi Government Cuts MLA Development Fund

The BJP says the fund cut will reduce waste and improve how public money is used. It also gives the party a chance to show a different style of leadership. This is one of many fast changes made since the BJP came to power in Delhi.

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