The Centre's fund share in centrally sponsored schemes(CSS) might come down if it accepts the recommendations of a high-powered panel of chief ministers on rationalisation such programmes.
The panel has favoured lowering the number of central schemes to 30 from 72 and earmarking 25 per cent of allocation in a scheme as flexi-fund, which would be spent in accordance with the finance ministry's guildelines.
To ensure the states spend their share of the funds, the panel suggested the Centre release its share after the states submit utilisation certificates for the instalment prior to the previous tranche.
The panel has favoured lowering the number of central schemes to 30 from 72 and earmarking 25 per cent of allocation in a scheme as flexi-fund, which would be spent in accordance with the finance ministry's guildelines.
To ensure the states spend their share of the funds, the panel suggested the Centre release its share after the states submit utilisation certificates for the instalment prior to the previous tranche.
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After the increased devolution to the states through the 14th Finance Commission, the 2015-16 Budget assistance to state plans was reduced from Rs 3.38 lakh crore in 2014-15 to Rs 2.05 lakh crore in 2015-16. The amount for centrally sponsored schemes was reduced from Rs 2.52 lakh crore to Rs 1.69 lakh crore.
The CMs' panel also recommended classifying all central schemes into three categories - core, core-of-core and optional.
In the first, the fund-sharing pattern between the Centre and states would be 60:40 for general category states. For the eight Northeastern and three Himalayan states, this ratio would be 90:10.
All core-of-core schemes would be fully funded by the Centre. In schemes categorised as optional, the fund-sharing pattern between the Centre and states would be 50:50 for general category states and 80:20 for Northeastern and hilly states. Funds for the optional schemes would be allocated to states as a lump sum and states would be free to choose which optional scheme they want to adopt. According to the panel's report, the NITI Aayog would frame the criteria for lump sum allocations and would monitor the implementation of all the schemes.
The panel submitted its report recently to Prime Minister Narendra Modi. The report has not yet been accepted by the Centre.
The mid-day meal scheme has been classified as core (60:40 sharing pattern). The Centre has reduced its allocation but would release the amount only after the states issue utilisation certificates.
The third tranche of funding for this scheme is believed to be pending from the Centre. The first two tranches for 2015-16 were released under the old sharing pattern, officials clarified.
In a statement in February, the government had said it would fully support the mid-day meal scheme, pending the report from the chief minister's panel. Till now, officials said, the cooking cost was being shared by the Centre and state governments in the ratio of 75:25. The Centre bears the cost of foodgrain.
Other major programmes for social protection and inclusion have been classified as core-of-core schemes: The Mahatma Gandhi National Rural Employment Guarantee Act, National Social Assistance Plan and the National Programme for Persons with Disabilities would continue to be 100 per cent funded by the Centre.
Housing for All, Law and Order and Justice Delivery System, Pradhan Mantri Krishi Sinchaee Yojana, Krishi Unnati Yojana and Swachh Bharat Abhiyan would be part of the core scheme segment. The Centre would give 60 per cent of the funds for these.
The chief ministers' panel was headed by Shivraj Singh Chouhan (Madhya Pradesh) and included Vasundhara Raje Scindia (Rajasthan), Mufti Mohammad Sayeed (Jammu & Kashmir), Raghubar Das (Jharkhand), Okram Ibobi Singh (Manipur) and K Chandrashekhar Rao (Telangana).
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