Following the approach of the FY 2081/82 federal budget, the new government of Madhesh decided in its first cabinet meeting to transform the Parliamentary Development Fund into schemes to provide funds to the MPs in the province assembly. This will be the new iteration of the Constituency Development Fund (CDF). Reports suggest that the federal budget has allocated a budget of about Rs 5 crore to each MP. This could be seen as an effort to circumvent the Supreme Court's decision on this issue. Members of Parliament (MPs) elected through the FPTP system will receive Rs 5 crore, while those elected through the proportional representation system will receive Rs 1.5 crore only. Obviously, such schemes will be decided based on the wishes of the province's MPs, with little regard for need, productivity or planned development.

The provision of a CDF for MPs is highly controversial. Reports of misuse consistently emerge whenever such funding has been provided. Under this scheme, critics allege the funds were diverted to cover campaign expenditures from the previous election and to fund personal campaigning for the next election. The lack of accountability has fueled public criticism and hindered positive public perception.

MPs need funds to maintain continuity of public relations in their constituencies and to address the small but essential and specific needs of the people. Sufficient funds must be arranged for MPs to tour their parliamentary constituencies, organise meetings with the public, and understand public perceptions and reactions to the work of the legislature and the executive. But such funding must be clearly defined to ensure transparency and objectivity. Critics argue the CDF was established to bolster the government's control of the Parliament, create opportunities for MPs to enrich themselves and stifle competitive politics within constituencies.

The CDF was established in FY 2051/52 during the tenure of PM Manmohan Adhikari. A total budget of Rs. 5.12 crore was allocated at that time, providing Rs. 250,000 to each of the 205 members of the House of Representatives (HoR). The move, aimed at maintaining government stability, initially excluded members of the National Assembly. However, the following financial year, Finance Minister Bharat Mohan Adhikari appropriated Rs 2 lakhs for each member of the National Assembly as well. Almost all the prime ministers and finance ministers have given continuity to this fund, and the amount allocated for it has also increased. Although Dr. Ram Sharan Mahat rejected it in 2055-56, the following government implemented it again. The period of Dr. Baburam Bhattarai and Khilraj Regmi was an exception. Under Regmi, the Parliament had been dissolved, leaving the government with a caretaker role until new elections could be held. Consequently, there was no need for the CDF.

There is another critical question connected with this fund regarding the categorisation of MPs. The Constitution guarantees equality among all members of Parliament, yet a distinction was drawn between members elected through the FPTP and those elected through the PR system. Members of the National Assembly were kept in the third category because the government does not need their confidence to stay in power.

In FY 2071-72, Finance Minister Ram Sharan Mahat introduced a new iteration of the CDF, named the Constituency Infrastructure Special Programme (CISP), which allocated Rs. 1 crore for each constituency. However, the MP elected through the FPTP system had significant decision-making power over how the money was to be spent. Additionally, all MPs, including the FPTP MPs, received a separate allocation of Rs. 15 lakhs for their own spending. This meant that the FPTP MP had a total of Rs 1 crore and 15 lakhs at their disposal, while MPs elected through the PR system had only Rs 15 lakhs. Over time, the allocations under this program continued to increase even under the new constitution, while MPs elected through the PR system remained disadvantaged.

Members of the HOR elected through the FPTP were given preferential treatment in the CISP. This discrimination among members of the federal parliament undermines the very concept of a mixed electoral system. Such disparity within the federal parliament devalues the role of National Assembly members, who represent the provinces within the federal parliament.

On August 23, 2023, the Constitutional Bench of the Supreme Court, headed by the Chief Justice, stayed the implementation of the CISP during the hearing of a writ filed in this regard. The Bench held that according to the principle of separation of powers, the work of the federal and provincial legislatures is legislative in nature, and the constitution does not grant them executive functions. The Bench further noted concerns that the programme may not accelerate development or promote good governance. Additionally, the Court commented on the disparity in criteria applied to MPs elected by FPTP, proportional representation, and members of the National Assembly.

The CDF, previously halted by the SC, appears to be back in operation under a different guise. The current government has sanctioned projects worth Rs 5 crore per constituency, with individual MPs holding decision-making power. This act of bypassing the Supreme Court's directive raises concerns about adherence to the rule of law in a democratic system. Copying the federal government, the new government of Madhesh Pradesh, in its first meeting, decided to launch a scheme allocating Rs 5 crores to MPs elected through the FPTP and Rs 1.5 crores to those elected through the PR system.

Manish Kumar Mandal, Paritosh Kumar Shah, Vikram Bhandari, Ratan Singh and Abid Hussain have filed a writ challenging this decision. During a hearing on June 12, 2024, the SC issued a show cause order. We expect the apex court to take this seriously and provide an important interpretation of the relevant constitutional arrangements and principles, as similar modes are being adopted in other provinces as well.

Lal is president, TMDP