Central schemes may be brought down to 52

A proposal to restructure Centrally Sponsored Schemes (CSS) to increase their effectiveness will soon be considered by the Cabinet. The Planning Commission is working on a proposal that seeks to reduce the number from 147 at present to 52 from the next financial year.

Last year, the B K Chaturvedi panel had recommended merging the schemes to enhance their flexibility, scale and efficiency. Finance Minister P Chidambaram has pushed for early implementation of the report.

“It will go to the Cabinet soon. There won’t be much savings for the Centre after the merger of the schemes but it will give a lot of flexibility to the states in terms of using the funds and their administrative costs will come down,” said a government official familiar with the development.

 

Currently, states are not able to spend allocated funds for some schemes, whereas they feel scarcity of resources with regard to other schemes but cannot divert the funds. If the schemes are merged, they will be free to use funds in line with the requirement.

CSS have been introduced in areas of national priority like health, education, agriculture, skill development, employment, urban development, and rural infrastructure.

The number of CSS had increased from 190 at the end of Fifth Plan to 360 at the end of Ninth Plan. The number declined from 155 to 99 at the beginning of Eleventh Plan and subsequently increased to 147. The share of CSS as percentage of gross budgetary support has increased in the last three Plans.

In the 11th Plan it went up to 41.6 per cent, against 38.6 per cent in the 10th Plan.