GST and MPLAD Scheme
The government has clarified that there is no current proposal to waive the Goods and Services Tax (GST) on the utilisation of the Members of Parliament Local Area Development (MPLAD) scheme funds. This decision was conveyed to a Parliamentary panel that had recommended removing GST to enhance the scheme's effectiveness.
- A GST of up to 18% is applied to work conducted under the MPLAD scheme.
- The GST rates and exemptions are determined by the GST Council, a statutory body.
- As per the Ministry of Statistics and Programme Implementation (MoSPI), there is no proposal to exempt MPLAD funds from GST.
Parliamentary Panel's Recommendations
- The panel had suggested that the MoSPI prepare a proposal for the Union Finance Ministry to waive GST from MPLAD funds to improve the scheme's effectiveness.
- Concerns were raised about the scheme being heavily taxed under GST, which would reduce its impact.
Scheme Allocation and Potential Reforms
- The panel inquired about increasing the yearly allocation from ₹5 crore per member, citing inflation and the need for durable community assets.
- The ministry confirmed that the scheme is approved until 2025-26, with future extensions subject to evaluation and stakeholder consultation.
National Statistical System (NSS) Enhancements
The ministry emphasised ongoing reforms in the National Statistical System (NSS), aiming to improve data accuracy and efficiency. This includes:
- Utilising mathematically valid scientific survey designs.
- Implementing 100% digital data collection.
- Ensuring robust online scrutiny and data cleaning.
- Capability to conduct multiple surveys simultaneously and publish results without delay.
