Government Enhances MLA Constituency Development Fund to ₹4 Crore, Scraps 90-Day Clause: A Boost for Local Development

Samba Times Special

In a significant move aimed at empowering local development, the Jammu and Kashmir government has announced an increase in the Constituency Development Fund (CDF) for Members of the Legislative Assembly (MLAs) from ₹3 crore to ₹4 crore annually, effective from the financial year 2025–26. Additionally, the government has removed the restrictive 90-day clause that previously mandated MLAs to recommend development works within the first three months of the financial year. This dual decision, announced on July 4, 2025, is set to provide greater flexibility and resources to elected representatives, enabling them to address the developmental needs of their constituencies more effectively.

Understanding the Constituency Development Fund (CDF)

The Constituency Development Fund (CDF) is a financial allocation provided to MLAs to undertake development projects within their constituencies. These projects typically include infrastructure improvements such as roads, schools, healthcare facilities, water supply systems, and community halls, among others. The CDF empowers MLAs to address local priorities directly, ensuring that funds are utilized for projects that reflect the specific needs of their constituents.

Until recently, each MLA in Jammu and Kashmir was allocated ₹3 crore annually under the CDF. However, the government has now raised this amount by ₹1 crore, bringing the total to ₹4 crore per MLA per year. This enhancement, coupled with the removal of the 90-day clause, marks a significant shift in how these funds can be managed and utilized.

What Was the 90-Day Clause?

The 90-day clause previously required MLAs to submit a list of proposed development works, up to the full annual CDF limit, within the first three months of the financial year. This restriction posed challenges for legislators, as it limited their ability to respond to emerging needs throughout the year. MLAs argued that constituency demands often arise unpredictably, requiring flexibility to allocate funds based on real-time priorities. For instance, urgent repairs or new projects might be identified during public interactions or seasonal challenges, which could not be addressed if the entire fund was committed within the first 90 days.

The clause was seen as particularly restrictive because exhausting the CDF early in the financial year left MLAs without resources to address subsequent demands. This led to dissatisfaction among legislators, who felt constrained in meeting the expectations of their constituents. The removal of this clause, as announced in an order by Santosh D. Vaidya, Principal Secretary to the Government, Finance Department, now allows MLAs to propose works throughout the financial year, provided they stay within the ₹4 crore annual ceiling.

Implications of the Changes

The enhancement of the CDF and the omission of the 90-day clause have far-reaching implications for both MLAs and the public they serve. Below are the key aspects of these changes:

1. Increased Financial Resources:
   The hike from ₹3 crore to ₹4 crore provides MLAs with an additional ₹1 crore annually to fund development projects. This 33% increase in funding can significantly boost the scale and scope of initiatives, allowing for more ambitious projects or the completion of multiple smaller ones. For example, an MLA could now allocate funds to build additional classrooms, upgrade healthcare facilities, or improve rural connectivity, addressing long-standing gaps in infrastructure.
2. Greater Flexibility for MLAs:
   The removal of the 90-day clause grants MLAs the freedom to plan and recommend projects throughout the year. This flexibility is crucial in addressing dynamic community needs, such as emergency repairs after natural calamities or responding to demands raised during public consultations. MLAs can now prioritize projects based on real-time feedback from constituents, ensuring that funds are used where they are most needed.
3. Improved Responsiveness to Local Needs:
   The earlier restriction often forced MLAs to rush project recommendations, sometimes leading to poorly planned or less prioritized works. With the ability to propose projects year-round, MLAs can engage more effectively with their constituencies, conducting thorough assessments and consultations to identify high-impact projects. This is likely to result in better-aligned development initiatives that directly benefit the public.
4. Enhanced Accountability and Transparency:
   The increased funding and flexibility come with an expectation of greater accountability. MLAs will need to ensure that the additional ₹1 crore is utilized judiciously, with clear documentation and transparency in project selection and execution. This could foster greater trust between elected representatives and their constituents, as people see tangible improvements in their areas.

Benefits for the People

The changes to the CDF are poised to deliver several direct and indirect benefits to the residents of Jammu and Kashmir:

• Accelerated Infrastructure Development: The additional funding can support the construction or upgrading of critical infrastructure, such as roads, bridges, schools, and healthcare centers. For instance, rural areas with limited access to quality education or medical services could see new facilities being established, improving the quality of life.
• Timely Response to Emergencies: The removal of the 90-day clause allows MLAs to allocate funds for urgent needs, such as repairing infrastructure damaged by floods or earthquakes, without being constrained by a rigid timeline. This ensures that communities receive timely support during crises.
• Community-Driven Development: With the ability to propose projects throughout the year, MLAs can better incorporate public input into their plans. This participatory approach ensures that development projects reflect the priorities of the people, whether it’s building community halls, improving water supply, or enhancing public transportation.
• Economic Boost: Increased spending on local projects is likely to create jobs and stimulate economic activity within constituencies. For example, construction projects will require labor, materials, and services, benefiting local economies and small businesses.
• Addressing Regional Disparities: The enhanced CDF can help MLAs in underdeveloped or remote constituencies prioritize projects that bridge gaps in access to basic services. This is particularly significant in Jammu and Kashmir, where geographical and socio-economic challenges vary widely across regions.

Challenges and Considerations

While the changes are largely positive, they also come with challenges that need to be addressed to maximize their impact:

• Efficient Fund Utilization: With increased funding, there is a need for robust mechanisms to ensure that funds are used efficiently and without delays. Bureaucratic hurdles or mismanagement could undermine the benefits of the enhanced CDF.
• Monitoring and Oversight: The government must establish strong oversight mechanisms to prevent misuse of funds and ensure that projects are completed on time and within budget. Regular audits and public reporting can enhance transparency.
• Equitable Distribution: MLAs must ensure that funds are distributed equitably across their constituencies, addressing the needs of marginalized or remote communities rather than focusing solely on urban or high-visibility projects.
• Sustainability: While the increased funding is a boon, MLAs should prioritize sustainable projects that deliver long-term benefits, such as renewable energy initiatives or durable infrastructure, rather than short-term, populist measures.

Conclusion

The Jammu and Kashmir government’s decision to raise the Constituency Development Fund to ₹4 crore per MLA and eliminate the 90-day clause for project recommendations is a progressive step toward empowering local development. By providing MLAs with more resources and flexibility, the government is enabling them to address the unique needs of their constituencies more effectively. For the people of Jammu and Kashmir, this translates into better infrastructure, improved access to services, and a more responsive governance system.

As Chief Minister Omar Abdullah emphasized during the announcement, this move fulfills a commitment made on the floor of the Assembly, reflecting the government’s focus on grassroots development. However, the success of this initiative will depend on how MLAs utilize these funds and whether the government can ensure transparency and accountability in their implementation. If executed well, this reform could pave the way for transformative change in Jammu and Kashmir’s constituencies, bringing tangible benefits to the people and strengthening the bond between elected representatives and their communities.