Centre not cutting flagship schemes but won't take over states' burden

Official says some savings are expected as the Centre will make cuts wherever there is low-priority expenditure

Even as state governments cut down on their development expenditure citing lack of revenues, the Centre will not compromise on its share of expenditure for any of the flagship schemes, a top government official has told Business Standard. 

The Union government, however, will also not take over the states' share of centrally-sponsored schemes in case they can't fulfil their expenditure commitments, the official said. 

This comes even as the Finance Ministry has told central departments that they should be careful in releasing funds and should first check if the states have the capacity to spend the money already released, before allocating