The Centre has decided to reduce the number of Centrally Sponsored Schemes (CSS) in the country by more than half by merging similar schemes for better implementation and monitoring.
The Union Cabinet, which approved merging of over 140 CSS into 66 schemes on Thursday, also agreed to give more operational flexibility to States.
“We have now reduced CSS to 66. There are many different schemes in one area (like horticulture). We have condensed them into one scheme,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters after the Cabinet meeting.
The Government has also decided to alter the scheme guidelines to suit the requirements of the States and give them greater flexibility to spend up to 10 per cent of the allocated funds.
Ahluwalia explained that States would have flexibility to incur expenditure under any scheme (up to 10 per cent of the allocation) as long as the project is within the broad guideline of a scheme.
He said innovation was very important while using the funds under CSS so that it can serve the broad purpose of the programme.
The approved schemes include 17 flagship programmes with significant outlays for major interventions required in health, education, irrigation, urban development, and infrastructure sectors.
“To suit the requirements of the States, the Cabinet has also approved that a scheme may have State specific guidelines which may be recommended by an Inter-Ministerial Committee constituted for this purpose,” it said.
The financial assistance to the States in these schemes would be provided through the Consolidated Funds of the States.