Rationalisation of Centrally Sponsored (CS) schemes mooted

Rationalisation of Centrally Sponsored (CS) schemes mooted

News

1. The 15^th Finance Commission chairperson N. K. Singh noted that Centrally sponsored schemes outcomes are questionable.
2. The commission suggested that cut down of such schemes will provide much needed flexibility to state governments in financing.

Important Facts:

3. As per the commission the schemes in operation do not justify the high cost incurred on them.

Public Financing

4. The status of public financing remains stressed because of-

• Payments made towards 7^th Pay Commission
• Farm loan waiver
• Debt restructuring under UDAY scheme

Merger of CSS

5. The number of Centrally sponsored schemes (CSSs) reached to 360 until 2002 which was pruned to 66 by 2013.
6. Further merger of CSSs was done on the report of Shivraj Singh Chauhan committee when CSSs were reduced to 27.

Demand for untied flow to states

7. State governments are demanding higher untied flow even though 14^th Finance Commission allotted 42% of the divisible pool to states.