The MPLAD Scheme is a Central Sector Scheme, fully funded by the Government of India. This scheme was announced on December 23, 1993, by the then Prime Minister of India in Parliament.

The main objective of the scheme is to enable each Member of Parliament to recommend works of developmental nature, with an emphasis on the creation of durable community assets based on the locally felt needs of the people.

Initially, the administration of MPLADS was with the Ministry of Rural Development. However, since October 1994, the administration of the scheme has been vested with the Ministry of Statistics and Programme Implementation.

The Ministry of Statistics and Programme Implementation is responsible for prescribing guidelines on how the scheme would be implemented and monitored by the various authorities.

The first guidelines on the scheme were issued in February 1994. These were subsequently revised in December 1994, February 1997, September 1999, April 2002, November 2005, August 2012, May 2014, and June 2016. At present, there will be an applicable new guideline that will be effective on April 1, 2023.

In 1993–94, when the scheme was launched, each Member of Parliament was allocated an amount of Rs. 5 lakh per annum, which was enhanced to Rs. 1 crore per annum in 1994–95 and further to Rs. 2 crore per annum in 1998–99, and it is currently fixed at Rs. 5 lakh per annum w.e.f. the financial year 2011–12.

In wake of the COVID pandemic, MPLADS was suspended from April 6, 2020, to November 9, 2021, and no funds were allocated to the scheme for FY 2020–21. For the balance period of FY 2021–22, i.e., from November 10, 2021, to March 31, 2022, Rs. 2 crore was allocated under the scheme for each Member of Parliament.