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Rationalisation of Centrally Sponsored (CS) schemes mooted
News
- The 15th Finance Commission chairperson N. K. Singh noted that Centrally sponsored schemes outcomes are questionable.
- The commission suggested that cut down of such schemes will provide much needed flexibility to state governments in financing.
Important Facts:
- As per the commission the schemes in operation do not justify the high cost incurred on them.
Public Financing
- The status of public financing remains stressed because of-
- Payments made towards 7th Pay Commission
- Farm loan waiver
- Debt restructuring under UDAY scheme
Merger of CSS
- The number of Centrally sponsored schemes (CSSs) reached to 360 until 2002 which was pruned to 66 by 2013.
- 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
- State governments are demanding higher untied flow even though 14th Finance Commission allotted 42% of the divisible pool to states.
