New Delhi, March 11 (IANS) Bringing cheer to parliament members, Finance Minister Pranab Mukherjee Friday hiked the constituency development fund to Rs.5 crore from the existing Rs.2 crore per constituency.

But he also warned the MPs from West Bengal, Tamil Nadu, Kerala, Assam and Puducherry that they could start committing funds for development works in their constituencies only after the state assembly elections are over in May this year.

Replying to a debate on the 2011-12 budget proposals in the Lok Sabha, Mukerjee said he agreed with his fellow MPs and had hiked the Member of Parliament Local Area Development (MPLAD) funds limit.

"We have considered the matter and I am happy to announce an increase in allocation under this scheme from Rs.2 crore to Rs.5 crore," he said.

This hike in the MPLADS fund has resulted in an increased allocation of Rs.2,370 crore for the 2011-12 financial year, he added.

"Please tell your colleagues from the states that are going to polls, they can make commitments on funds utilisation only after the elections are over from end of May," Mukherjee added.

He also said that the report of the government auditors has been received by his ministry and this would be examined by the Parliamentary Public Accounts Committee (PAC) headed by Bharatiya Janata Party (BJP) leader Murli Manohar Joshi.

"Just yesterday (Thursday), I received the report of the CAG (Comptroller and Auditor General), which has dealt with this subject and made certain recommendations," he said.

"The PAC will examine them and give a report so I can improve the guidelines for MPLADS in consultation with the chairpersons of the MPLADS committees," he added.

West Bengal, Tamil Nadu, Kerala, Assam and Puducherry go to polls in April.