Uttar Pradesh: BJP Legislator Calls For Exclusion Of GST From Legislative Area Development Fund

Uttar Pradesh: BJP Legislator Calls For Exclusion Of GST From Legislative Area Development Fund

A Legislator gets Rs 5 crore as Legislature Fund and in the budget presented in the Vidhan Sabha on Monday, Yogi government has allocated Rs 2520 crore as Legislature Fund.

BISWAJEET BANERJEEUpdated: Monday, February 05, 2024, 05:45 PM IST
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Vijay Bahadur Pathak |

The Bharatiya Janata Party (BJP) Legislator Vijay Bahadur Pathak has raised concerns regarding the imposition of Goods and Services Tax (GST) on the Legislative Area Development Fund, formerly known as the MLA Fund, demanding that the GST deductions should be excluded from the Legislature's Fund.

Pathak addressed the issue through a Calling Attention Motion in the State Legislative Council, highlighting the burden imposed by an 18 percent GST levy by the District Rural Development Authority (DRDA).

Yogi government has allocated Rs 2520 crore as Legislature Fund

A Legislator gets Rs 5 crore as Legislature Fund and in the budget presented in the Vidhan Sabha on Monday, Yogi government has allocated Rs 2520 crore as Legislature Fund. This means Rs 453.60 crore would be deducted as GST from this fund, the MLC said.

According to Pathak, this deduction has substantially diminished the efficacy of the fund, affecting the ability of legislators to effectively serve their constituencies.

"Post-GST deductions, each Legislator receives approximately Rs 90 lakh annually, against Rs 5 Crore earmarked for local development endeavors. This substantial deduction of Rs 10 lakh prevents the implementation of many projects," Pathak stated, emphasizing the hindrance posed by GST deductions to legislators' constituency services.

Legislature Fund

The Legislature's Fund, initiated by the State Government in the fiscal year 1999-2000, is allocated to every member of the State legislature – Vidhan Sabha and Vidhan Parishad – for carrying out developmental projects in their respective constituencies. Under the revamped Legislative Area Development Fund, legislators have played a pivotal role in executing a diverse range of development initiatives within their constituencies.

Expressing his grievance, Pathak urged the Ministry of Finance to reconsider the inclusion of the Legislative Area Development Fund within the ambit of GST. He underscored the fund's critical role in addressing public welfare needs and emphasized the necessity of exempting it from GST levies.

"The GST deduction has prevented the optimal utilization of these funds, and therefore, we are demanding its exclusion from GST regulations," Pathak asserted, urging authorities to prioritize the efficient utilization of Legislative Area Development Funds for the betterment of communities across the state.

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