Major recommendations of the panel of Chief Ministers on rationalisation of Centrally Sponsored Schemes (CSSs) was approved by the Union Cabinet on Wednesday.
The Sub-Group Chief Ministers on Rationalisation of CSSs was set up in the first meeting of the Governing Council of the NITI Aayog in February 2015. The group had examined 66 CSSs. It had recommended that CSSs should not exceed 30.
“The rationalisation of CSSs would ensure optimum utilisation of resources with better outcomes through area specific interventions. This would also ensure wider reach of the benefits to the target groups,” an official statement said.
Limiting the number of CSSs to 30 and dividing existing CSSs into core and optional schemes were some of the recommendations accepted.
The focus of core CSS schemes should be on such programmes that comprise the National Development Agenda. The core schemes within this category will be those that are there for social protection and social inclusion. In the optional schemes, States would be free to choose the ones they wish to implement and funds will be allocated to the States by the Finance Ministry as a lump sum.
Funding pattern The Cabinet also approved the Sub-Group’s recommendations on the funding pattern of the CSSs. The existing funding pattern for the core of core schemes will continue. For the other core schemes, the eight north-eastern States and 3 Himalayan States will get 90 per cent funding from the Centre and 10 per cent from the their own funds.
For other States, the ratio will be 60 per cent from the centre and 40 per cent from states own funds. The optional schemes in the special states will be funded 80 per cent by the centre and 20 per cent by the states. For other states the split will be 50:50.
The Central ministries will also permit flexibility in the choice of components to the states available under the Rashtriya Krishi Vikaas Yojana. Moreover, the flexi-funds available in each CSS will be raised to 25 per cent for the states and 30 per cent for the union territories.