The Correct Answer is 1, 2 and 4 only.

• MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc. Hence Statement 1 is Correct.
• MPs are to recommend every year, works costing at least 15 percent of the MPLADS entitlement for the year for areas inhabited by SC population and 7.5 percent for areas inhabited by ST population. Hence Statement 2 is Correct. 
• Funds released to the District Authority by the Government of India are non-lapsable.
• Funds left in the district can be carried forward for utilization in the subsequent years. Hence Statement 3 is Not Correct.
• The District Authority would be responsible for overall coordination and supervision of the works under the scheme at the district level and inspect at least 10% of the works under implementation every year. Hence statement 4 is Correct.

• Member of Parliament Local Area Development (MPLAD) scheme was introduced in December 1993.
• It empowers every Member of Parliament (MP) to spend a certain sum of amount on the development of his/her constituency on various social development areas such as health, education, drinking water, electricity, family welfare, sanitation and so on.
• The Ministry of Statistics and Programme Implementation has been responsible for the policy formulation, release of funds and prescribing monitoring mechanism for implementation of the Scheme.
• The MPLADS is a Plan Scheme fully funded by the Government of India.
• The annual MPLADS fund entitlement per MP constituency is Rs. 5 crores.