Lok Sabha Question No. 92 (STARRED), answered on 2017-07-21
Subject: Flexi-Funds under Centrally Sponsored Schemes
Ministry: FINANCE
Asked by: SANTOSH AHLAWAT, SUMEDHANAND SARASWATI

## Department Of Expenditure

## Ministry Of Finance Lok Sabha

## Starred Question

To be answered on Friday, July 21, 2017/ Ashadha  30, 1939 (Saka)

'

## Flexi-Funds under Centrally Sponsored Schemes'

* 92 SHRIMATI SANTOSH AHLAWAT: SHRI SUMEDHANAND SARSWATI:

Will the Minister of FINANCE be please to state:

- a)  whether  the  Government  has  raised  flexi-funds  availability  in  each  Centrally sponsored scheme from 10 per cent to 25 per cent for the States and 30 per cent for the UTs of the overall annual allocation under each scheme;
- b)  if so, the details thereof along with the objective of increasing the flexi-funds; and
- c)  whether the Government has prepared any guidelines for monitoring, evaluation and audit of the flexi-funds and if so, the details thereof?

## ANSWER

## Minister of Finance (Shri Arun Jaitley)

- (a) to (c): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.* 92 REGARDING 'FLEXI-FUNDS UNDER CENTRALLY SPONSORED SCHEMES' RAISED BY SHRIMATI SANTOSH AHLAWAT AND SHRI SUMEDHANAND SARSWATI.

- (a)  NITI Aayog vide O.M. No. O-11013/02/2015-CSS & CMC dated 17 th August 2016 has issued instructions for Rationalization of Centrally Sponsored Schemes (CSS). As per para 6 of the said OM, flexi-funds available in each CSS has been raised from the current level of 10% to 25% for States, and 30% for UTs, of the overall annual allocation under each scheme.
- (b)   and  (c):  Guidelines  for  Flexi-Funds  within  Centrally  Sponsored  Schemes  was issued by Department of Expenditure vide O.M. dated 6th September 2016. As per para 4 of the said O.M., the flexi-fund component within the Centrally Sponsored Schemes can be used to achieve the following objectives:
- (i) To  provide  flexibility  to  States  to  meet  local  needs  and  requirements  within  the overall objective of any given Scheme at the sub-head level;
- (ii) To  pilot  innovation  to  improve  efficiency  within  the  overall  objective  of  any  given Scheme at the sub-head level;
- (iii)  To  undertake  mitigation/  restoration  activities  in  case  of  natural  calamities,  or  to satisfy local requirements in areas affected by internal security disturbances.

With regard to monitoring, evaluation & audit, the OM dated 6 th September, 2016 stipulates the following:

- (i) Web-based reporting for the use of flexi-funds may be designed by adding modules to the existing MIS. Outcomes (medium term) and outputs (short term) should be part of the MIS along with pictures/ images and good practices to ensure greater transparency and learning across States.
- (ii)  Evaluation of flexi-funds may be done through the existing evaluation mechanism, including those set by the Ministries, NITI Aayog, or by independent third parties. Terms  and  conditions  for  evaluations  may  be  designed  in  such  a  manner  that outcomes of the Schemes as a whole, as well as the flexi-funds are well identified and measurable.
- (iii)  Flexi-funds within each CSS will be subject to the same audit requirements as the parent centrally  Sponsored Scheme, including audit by the Comptroller & Auditor General.

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