Cut CSS to 20-25 from 66 now: CMs

Chouhan panel to recommend central funding in these to be not less than half, flexi-funds to be raised to 25%, opt-out choice for all other schemes

In a proposed revamp of centrally sponsored schemes, NITI Aayog’s sub-group of chief ministers on the issue has decided to recommend lowering the number to 20-25 from the existing 66.

Officials said the meeting, chaired by Madhya Pradesh’s Shivraj Singh Chouhan, felt the central share in all CSS should not be less than 50 per cent. And, the funding pattern should stay unchanged for the next five years. At present, the central share in CSS varies from 90:10 to 70:30.

“We will meet again in Delhi on June 13 and I think we will be able to give the report to Prime Minister Narendra Modi by June 20,” Chouhan told reporters in Bhopal after the meeting. The Centre wants states to fund schemes more, after the 14th Finance Commission recommended an increase in their share of the divisible pool of central taxes to 42 per cent for a five-year period starting from this financial year from  the earlier 32 per cent.

The CMs’ have also proposed that the amount of funds in each CSS on which states would have the discretion of spending within the broad objective of the main programme, termed ‘flexi-funds’, be raised to 25 per cent.

A committee on reforming the CSS, formed under the chairmanship of former Planning Commission member B.K Chaturvedi during the previous UPA government, had suggested such flexi-funds be fixed at 10 per cent for each flagship scheme and 20 per cent for non-flagship ones.

The Chaturvedi panel had also recommended bringing down the total number of CSS to 59, including nine flagship ones, from 147 then. The final agreed number was 66. Officials said the Chouhan recommendations are that in all other schemes apart from the 20-25 CSS, states have the option to continue with or drop these, as central funding won’t be available. So, schemes in which states do not see any merit and where central funding is not available might not be run.

The committee has further decided that there be a sub-scheme in all main schemes, which would not be mandatory for states to follow. For example, under the Krishannoti Yojana, some of the sub-schemes are Rashtriya Krishi Vikas Yojana and National Food Security Mission. Under the Pradhan Mantri Krishi Sinchaee Yojana, there are the Accelerated Irrigation Benefit and Flood Management programmes. The states will have an option of not adopting any of the sub-schemes, depending on their priorities.

The sub-group also decided to propose that all CSS funds be made available to states in two tranches, in April and October. Also, that all incomplete CSS projects  be completed by 2017 with the help of central funds.

The CMs of six states, including Oommen Chandy of Kerala, Raghubar Das of Jharkhand and Chandrashekar Rao of Telangana, participated in the Bhopal meeting. Rao felt the central share should not be less than 80 per cent in any scheme. Chandy and Nagaland’s T R Zeliang felt the Backward Region Grant Fund should continue and northeastern and coastal states should get special focus in CSS.

(With inputs from Shashikant Trivedi in Bhopal)