Odisha to identify projects for availing flexi-funds under central schemes

The Odisha government has initiated the process to identify projects for availing Flexi-Funds under centrally sponsored schemes (CSS).

A state level sanctioning committee (SLSC) has been formed in the department of planning & coordination for sanction of projects under the flexi-fund component of CSS.

“You are requested to identify the projects under flexi-fund component within CSS relating to your department in accordance with the guidelines of the government of India and submit project proposals to the planning & coordination department for placing the same before SLSC for sanction of projects,” Injeti Srinivas, development commissioner (Odisha) wrote to all departments.

The introduction of a flexi-fund component under CSS is aimed at providing flexibility to states to meet local needs and requirements within the overall objective of each programme or scheme.

The flexi-fund component is also meant to pilot innovations and undertake mitigation and restoration activities in case of natural calamities in the sectors covered by CSS.

The concerned central ministries would keep at least 10 per cent of their Plan Budget for each CSS as flexi-fund except for schemes which emanate from a legislation like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) or schemes like Rashtriya Krishi Vikas Yojana (RKVY) where the whole or substantial proportion of the budgetary allocation is flexible.

After approval of the Plan Budget, the central ministries would communicate tentative allocations for each CSS to states including the allocation of flexi-funds by the end of May of every fiscal.

Allocations to states will be based on transparent and equitable criteria.

Since flexi-funds are a part of the concerned CSS, the same state share would be applicable for the flexi-fund component as well. However, states may provide additional share over and above the required state share for the flexi-fund component.

Under the guidelines, the flexi-funds of a CSS in a particular sector cannot be diverted to fund activities/schemes in other sectors. But it is permissible to converge flexi-funds of different schemes toimprove efficiency and effectiveness of outcomes.

Flexi-funds cannot be used to substitute state’s own Non-Plan or Plan scheme/expenditure. Also, states are barred to use such funds for construction or repairs of offices and residences of government officials, general publicity, purchase of vehicles and furniture for offices, distribution of consumer durables and incentives for staff.