Centre gives states more freedom to spend funds under CSS

The Centre on Sunday issued fresh flexi-fund guidelines which will give more freedom to states in spending money under the Centrally Sponsored Schemes (CSS) to meet local developmental requirements.

Under the new norms, flexi-fund in each CSS has been increased from the current 10 percent to 25 percent for states and 30 percent for union territories. The Finance Ministry said that states can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.

The guidelines said that the state governments will have to constitute a state-level sanctioning committee to avail of the flexi-fund facility. The flexi-fund facility is not for the CSS which emanate from legislation, like MNREGA. The ministry said that based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of Centrally Sponsored Schemes.