With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct?

1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.

2. A specified portion of each MP’s fund must benefit SC/ST populations.

3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.

4. The district authority must inspect at least 10% of all works under implementation every year.

Select the correct answer using the code given below:

The correct answer is 1, 2 and 4 only.

Let us analyze each statement to understand why this is the correct choice under the Members of Parliament Local Area Development Scheme (MPLADS):

Statement 1 is correct: The primary objective of the MPLADS scheme is to enable Members of Parliament (MPs) to recommend works of developmental nature with emphasis on the creation of durable community assets based on the locally felt needs. These assets include physical infrastructure for health, education, drinking water, sanitation, and roads, among others.

Statement 2 is correct: There is a specified sub-allocation of funds under MPLADS to benefit Scheduled Castes (SC) and Scheduled Tribes (ST) populations. Out of the annual allocation of each MP, at least 15% must be recommended for areas inhabited by SC populations and at least 7.5% for areas inhabited by ST populations.

Statement 3 is incorrect: MPLADS funds are non-lapsable. The annual allocation of 5 crore rupees is sanctioned on a yearly basis, but if any portion of the funds remains unused in a particular year, it does not lapse. Instead, the unspent balance is carried forward to the subsequent years and added to the MP's entitlement.

Statement 4 is correct: To ensure proper implementation, quality, and accountability, the guidelines specify that the District Authority must inspect at least 10% of all works under implementation every year.

Therefore, statements 1, 2, and 4 are correct, while statement 3 is incorrect, making 1, 2 and 4 only the correct choice.