State govts worry as Centre plans to trim schemes in upcoming Budget

Govt looks to rationalise centrally sponsored schemes due to fiscal constraints

As fiscal constraints and the need to allocate funds for Covid vaccination are pushing the Union government to rationalise and even discontinue some of the centrally sponsored as well as central sector schemes in the Budget-making process, Opposition states have raised concern over such a move.    

Currently, centrally sponsored schemes (CSS), at an allocation of Rs 3.4 trillion, make up for about 9 per cent of the Union Budget. In fact, the share of CSS allocation in total expenditure has come down from 10.4 per cent in 2016-17 to 9.1 per cent in 2021-22. In the case of central sector