Lok Sabha Question No. 3754 (UNSTARRED), answered on 2017-03-24
Subject: Centrally Assisted Projects
Ministry: FINANCE
Asked by: BAHADUR SINGH KOLI

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 3754 TO BE ANSWERED ON FRIDAY 24th MARCH, 2017

## [3 Chaitra, 1939 (SAKA)]

Centrally Assisted Projects'

Will the MINISTER OF FINANCE be pleased to state:

- centrally assisted projects have been discontinued due to the Central (a)
- whether several in allocation of taxes and duties between centre and States/UTs; Government changes
- (b)
- if so, the details thereof and the reasons therefor;
- of
- whether the several States have submitted representations the sharing of Central (d) taxes; and against
- whether this step has affected the flow of funds meant for the developmental (c) States/UTs and if so, the details thereof; projects
- (e)

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

- The Fourteenth Finance Commission (FFC) after considering factors, recommended share of the States in the divisible of Central Taxes and enhancement in the Duties from 32% to 42% with effect from 2015-16,which was accepted by the Union Memorandum on FFC recommendations submitted to Government: The Explanatory out that the unconditional transfers of funds to States in the the President also brought tax devolution will allow the States greater autonomy in financing and form of higher schemes as per their needs and requirements: In view of acceptance of the designing recommendations of increasing States' Fourteenth Union Government  decided to change the funding of Centrally Sponsored all pool pattern

Schemes have been broadly divided into three categories i.e. Centrally Sponsored Union Government which are of national priorities, supported by and especially meant for the poor; (i) Schemes to be run carrying legal obligations

- (a) & (b) Schemes.

funding by both the Union & State with the changed sharing pattern having the States and delinked  from (iii) Schemes completely transferred to governments; delinked from Union Support is enclosed as Annex Union Support: List of Schemes Abhiyaan (RGPSA) AOHowever; earstwhile Rajiv Gandhi Panchayat Shashaktikaran (PSA) is being implemented as Capacity Building-Panchayat Shashaktikaran Abhiyaan as a Central Sector Scheme. partial

- affected the fund flow meant for the developmental projects of the (c) This step has not Central Taxes and Duties by 10% states as the States receiving higher share in started
- the acceptance of Fourteenth Finance Commission (d) & (e) No State has represented of the States in the divisible of recommended enhancement in the share (FFC) s However, the Government  received Central Taxes and Duties   from   32% to 42%. from states regarding  changed in the Centrally  Sponsored representations a Sub-group in NITI Aayog under the Schemes   (CSS): Government set up Madhya Pradesh convenership of Sh: Shivraj Singh Chauhan, Hon'ble Chief Minister, 'including 10 Chief Ministers of various states; to examine consisting of 12 members, framework and recommend sharing the current Centrally Sponsored Schemes (CSS) Sponsored for   streamlining,  flexibility,  reforms in  Centrally and measures and States for achieving the objective of Schemes & coordination between the Centre the Schemes: against pool pattern pattern

the recommendations of the Sub-group and NITI Aayog The Government has accepted rationalization   of Centrally on August 2016 has issued  modalities regarding funding Schemes (CSS) including their  funding pattern: The   approved Sponsored Schemes (CSS) is as follows: of the Centrally Sponsored 17th pattern

- pattern will continue for Core of the Core schemes The existing funding
- Schemes; the funding pattern for the 8 North Eastern States and iii. For Optional Himachal Pradesh and Jammu & Kashmir Himalayan States of Uttarakhand, for the rest of the States this shall be Centre: 80% and State: 20%, whereas ratio shall be Centre: 50% and State: 50%.
- for the 8 North Eastern States and ii\_ For Core Schemes, the funding pattern & Kashmir States of Uttarakhand, Himachal Pradesh and Jammu Himalayan 90% and State: 10%, whereas for the rest of the States this shall be Centre: ratio shall be Centre: 60% and State: 40%.
- CSS will be sanctioned where the central share is less than iv. Ordinarily, no 50%.
- indicated above shall be subject to the
- V However, all the sharing patterns indicated in the sharing that if the central share is already below that then the Centre's share would remain capped at their level: pattern, proviso present

## delinked from support\_from\_the Centre Schemes

| 1   | National e-Governance Plan                                                |
|-----|---------------------------------------------------------------------------|
| 2   | Backward Regions Grant Funds                                              |
| 3   | Modernization of Police Forces                                            |
| 4_  | Rajiv Gandhi Panchayat Sashaktikaran Abhiyaan (RGPSA) developing   export |
| 5_  | Central Assistance to the States for Scheme for infrastructure            |
| 6.  | Scheme for setting up of 6000 Model Schools                               |
| 7   | National Mission on Food Processing                                       |
| 8   | Tourist Infrastructure                                                    |