States to get half of Central scheme funds

States will now have greater flexibility with Centrally-sponsored schemes. The Union government has given its nod to a new plan that will facilitate transfer of 50 per cent of the scheme amount to the states.

Rural development minister Jairam Ramesh says the Centre plans to spend more than Rs 88,000 crore this financial year on rural development. “This ought to boost development, but the inflexibility of Central government sponsored schemes are a major hurdle. We want to remove this,” he told reporters here.

The minister noted that India’s diversity does not permit the authorities to use the same yardstick for all states. “Each state has different conditions. Therefore, their priorities are different. Hence, we have decided to transfer 50 per cent of the total amount for the schemes to states. They can use it according to their priorities.”

Ramesh also batted for stricter monitoring of the Mahatama Gandhi National Rural Employment Guarantee Scheme (MNREGS) and Indira Awas Yojna (IAY). “There are several reports about the misuse of MNREGS funds. In many cases, SUVs are bought by the elected representatives using MNREGS money or that of IAY,” he said.

“We believe that such leakages can be curbed if state governments do stricter monitoring. This money is for the poor people.”

The Centre has also entrusted the works related to road construction under the Pradhan Mantri Gram Sadak Yojana (PMGSY) to state governments from the next fiscal. “The Central agency will not be involved in PMGSY work. We have not found any difference in the quality of roads constructed by the state governments and Central agencies under this yojana. From the next financial year, the states will be responsible for the implementation of PMGSY.”

The Union government has also decided to increase the number of districts that would be listed as Naxal-affected. “We have decided to increase their number from 60 to 78. All villages having a population of 250 people and above in Naxal-hit districts would be linked with roads under the PMGSY,” he added.