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Rekha Gupta Government Slashes Delhi MLAs’ Local Area Development Fund from ₹15 Crore to ₹5 Crore

Major Shift in Policy Under New Delhi Government
After a recent change in leadership, the newly formed government under Chief Minister Rekha Gupta has introduced significant policy changes in Delhi. One of the first major decisions involves reducing the annual Local Area Development (LAD) fund allocated to each MLA.

MLA Fund Cut by Two-Thirds
According to a fresh directive issued by the Urban Development Department of Delhi, the annual LAD fund for each Member of the Legislative Assembly (MLA) has been reduced from ₹15 crore to ₹5 crore. This marks a sharp cut of two-thirds from the previous allocation.

Reversal of AAP Government’s Policy
This move comes just a year after the previous Aam Aadmi Party (AAP) government increased the LAD fund from ₹10 crore to ₹15 crore, aiming to boost developmental work at the constituency level. Rekha Gupta’s government has now reversed that decision, citing administrative and budgetary considerations.

Official Order Issued by Urban Development Department
The Urban Development Department has formally issued the order to all constituencies, notifying them of the revised fund allocation. The department has instructed MLAs to plan local development activities within the new limit of ₹5 crore per annum.

Political Reactions and Speculations
The decision has triggered political debate in the capital. While the ruling government justifies the move as a step toward more efficient fiscal management, opposition leaders and former AAP MLAs have criticized it as a blow to grassroots development and public welfare projects.

Impact on Local Development Projects
With this reduced funding, many pending and proposed local infrastructure projects may face delays or downsizing. Constituencies that had planned community facilities, roadworks, school upgrades, and healthcare centers might need to revisit their budgets and timelines.

Conclusion
The reduction of MLA funds is a strong signal of changing priorities under the new administration. As the Rekha Gupta government continues to implement its agenda, all eyes are on how this and future policy shifts will reshape governance and public services in Delhi.

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