Schemes which have outlived their relevance can be terminated, says expenditure secretary T V Somanathan.
By Asit Ranjan Mishra | Livemint, New Delhi
PUBLISHED ON FEB 03, 2021 07:36 AM IST
The Union authorities will slash India’s 131-odd centrally sponsored schemes value ₹3.8 lakh crore by a 3rd in FY22 primarily based on the suggestions of the fifteenth Finance Fee, a prime finance ministry official stated.
Schemes which have outlived their relevance can be terminated and schemes with low outlay can be consolidated to make them extra impactful, expenditure secretary T.V. Somanathan stated.
“We’ve carried out an train. There are 131 centrally sponsored schemes. We intend to scale back the variety of schemes by roughly one third taking into consideration the suggestions of the Finance Fee. The schemes with a really low outlay when it’s unfold throughout states, it turns into a skinny, non-impactful form of scheme. So, we need to scale back the variety of such schemes in addition to these schemes which have outlived their relevance over a time frame and consolidate them right into a smaller variety of extra impactful schemes. This can be applied throughout FY22,” Somanathan stated in an interview.
So as to make the most of funds from the centre, states have to contribute 40% of the outlay in CSS, besides the North Jap states that contribute 10%. This reduces the untied funds that needs to be obtainable to states with no strings connected.
States have been demanding extra flexibility in implementing the schemes whereas decreasing their proliferation. Many earlier committees together with a sub-group of chief ministers beneath Niti Aayog chaired by Madhya Pradesh chief minister Shivraj Singh Chouhan in 2015 had stated the ‘one-size-fits all’ method of CSS was adversely affecting outcomes.
States have been urging the centre to switch such funds on to them in order that they’ll design schemes in response to their very own wants.
In response to the FFC, 15 of the 30 umbrella CSSs account for about 90% of the entire allocation beneath CSS. Many umbrella schemes have, inside them, a variety of small schemes, a few of them with negligible allocations.
“A threshold quantity of annual appropriation needs to be mounted, under which the funding for a CSS could also be stopped. Under the stipulated threshold, the administrating division ought to justify the necessity for the continuation of the scheme. Because the life cycle of ongoing schemes has been made co-terminus with the cycle of Finance Commissions, the third-party analysis of all CSSs needs to be accomplished inside a stipulated timeframe. The funding sample of the CSSs needs to be mounted upfront in a clear method and needs to be stored secure,” the FFC stated in its report tabled in Parliament on Monday.
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