New Delhi: Finance Minister Pranab Mukherjee on Friday announced to increase the Member of Parliament Local Area Development (MPLAD) fund to Rs 5crore from existing Rs 2 crore per annum during his reply to the debate on the general Union Budget in the Lok Sabha.

Pranab Mukherjee cautioned the members against the misuse of the fund and indicated that tough measures would be taken to check the wrongdoing.

The Finance Minister said, "MPs cutting across party lines have been demanding for the hike in the allocation of fund under the MPLAD Scheme. We have considered the matter and I am happy to announce an increase in allocation of Rs 2 crore to Rs 5 crore."

"CAG (Comptroller and Auditor General) report on implementation of MPLAD Scheme has just been received and will be laid on the table of House shortly. Concerns expressed therein will be addressed while formulating the guidelines for enhanced allocation," he added.

He added that the states of Assam, Kerala, Tamil Nadu, West Bengal and Union Territory of Puducherry are heading toward Assembly polls, therefore, MPs from these states and UTs will not be able to utilise the enhanced allocation or make commitments against this till the entire election process is over.