Lok Sabha Question No. 4567 (UNSTARRED), answered on 2019-07-22
Subject: Centrally Sponsored Schemes
Ministry: FINANCE
Asked by: Jayadev Galla

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 4567

Monday 22 nd July, 2019/ Ashadha 31, 1941 (Saka)

## Centrally Sponsored Schemes

## 4567. SHRI JAYADEV GALLA:

Will the Minister of FINANCE be pleased to state:

- a) The Details of each of the Centrally Sponsored Schemes (CSSs) being implemented in the country along with the status of their implementation, State-wise;
- b) Whether  it  is  true  that  15 th Finance  Commission  has  asked  for  rationalisation  of CSSs;
- c) If so, the details thereof;
- d) Whether it is true that the States have been demanding increased flow of untied fiscal resources in place of tied fiscal resources that come with CSSs; and
- e) If so, the action taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE FOR FINANCE (SHRI ANURAG SINGH THAKUR)

(a) to (e): Considering the dominant view of the States that a majority of the resources should  flow  in  the  form  of  tax  devolution  and  the  suggestion  of  an  overwhelming majority of States for reducing the number of Centrally Sponsored Schemes (CSSs) as well as outlays on them, the 14 th Finance Commission recommended a jump of 10% in the States' share in the net proceeds of the Union tax revenues from 32% to 42%.  In view  of  the  substantial  increase  in  devolution  of  taxes  to  States  and  higher  revenue deficit grants recommended by the 14 th Finance Commission, the Central Government on  9 th March,  2015  constituted  a  Sub-Group  of  Chief  Ministers  on  rationalization  of Centrally Sponsored Schemes.

Based on the recommendation of the Sub Group of Chief Ministers and in consultation with various Ministries/ Departments and other Stakeholders, GoI has rationalized the existing  66  Centrally  Sponsored  Scheme  (CSSs)  into  28  schemes and  revised  the funding pattern for CSSs which was communicated by NITI Aayog vide it's O.M. dated 17.08.2016.  The    existing  66  Centrally  Sponsored  Schemes  have  been  rationalized into  28  schemes,  broadly  divided  into  two  categories,  namely,  (i)  Core  of  the  Core Schemes (6), (ii) Core Schemes (22). The funding pattern of the restructured Centrally Sponsored Schemes is  (i) Core of the Core schemes (6 in nos): No change in the erstwhile funding pattern, (ii) Core schemes (22 in nos): For the 8 North Eastern States and Himalayan States of Uttarakhand, Himachal Pradesh and Jammu & Kashmir, 90% of expenditure is borne by Centre, and remaining 10% by States. For the rest of the States - sharing ratio between Centre and State is 60:40.

Further, the level of flexi fund available in each CSS has been raised from 10% to 25% after revising the funding pattern of CSS. This was done to enable the States to satisfy the local needs and undertake innovations.

The trend in outlays in the Expenditure Budget of GoI for 28 CSSs for the last four years shown below reflects an increase of around 37.42% in 2019-20 BE (Final) compared to actual of 2016-17.

| Actual 2016-17   | Actual 2017-18   | RE 2018-19   | (Rs. in Crore) BE (Final) 2019-20   |
|------------------|------------------|--------------|-------------------------------------|
| 2,41,296         | 2,85,448         | 3,04,849     | 3,31,610                            |

The Terms of Reference (ToR) for the 15 th Finance Commission, mandates that while making  its recommendations,  the Commission  shall have regard, among  other considerations,  to  the  impact  on  the  fiscal  situation  of  the  Union  Government  of substantially enhanced tax devolution to States following recommendations of the 14 th Finance Commission, coupled with the continuing imperative of the national development  programme  including  New  India  -2022;  and  the  Commission  may consider proposing measurable performance - based incentives for States, inter alia, in the area of achievements in the implementation of flagship schemes of Government of India,  disaster  resilient  infrastructure,  sustainable  development  goals,  and  quality  of expenditure.

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