Lok Sabha Question No. 3524 (UNSTARRED), answered on 2019-07-15
Subject: Funding of Centrally Sponsored Schemes
Ministry: FINANCE
Asked by: Anubhav Mohanty, Chandra Sekhar Sahu

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE LOK SABHA

## UNSTARRED QUESTION NO. 3524

Monday 15 th

## July, 2019 / Ashadha 24, 1941 (Saka) Funding of Centrally Sponsored Schemes

## 3524. SHRI ANUBHAV MOHANY SHRI CHANDRA SEKHAR SAHU:

Will the Minister of FINANCE be pleased to state:

- a)  Whether the Centrally Sponsored Schemes like the Pradhan Mantri Gram Sadak Yojana (PMGSY) which was 100 per cent funded by the Centre has now been reduced  to  60  percent  with  40  percent  to  be  shared  by  the  concerned  State Governments as matching share;
- b)  If so, the details thereof and the reasons therefor;
- c)  Whether diversion of State fund for Central schemes is likely to affect the State Sponsored Schemes as the funds with the State Governments are limited;
- d)  If so, whether the Union Government will consider to revert back to 100 percent funding  of  such  schemes  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor; and
- e)  The  manner  in  which  Union  Government  will  help  the  State  Governments  to lessen their financial burden including FANI hit  Odisha?

## ANSWER

## MINISTER OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a)  to  (d) :  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.

It may also be stated that following the implementation of the recommendations of the 14 th Finance Commission, the devolution to States has been increased from 32% to 42%, thereby increasing the resource availability with the States vis-a-vis the Centre. 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 five  years shown below reflects an increase of around 63% in 2019-20 BE (Final) compared to actual of 2015-16.

| Scheme   | Actual   | Actual   | Actual 2017-18   | RE       | (Rs. in Crore) BE (Final)   |
|----------|----------|----------|------------------|----------|-----------------------------|
| Category | 2015-16  | 2016-17  |                  | 2018-19  | 2019-20                     |
| CSS      | 2,03,740 | 2,41,296 | 2,85,448         | 3,04,849 | 3,31,610                    |

(e) : Under the Central Share of State Disaster Response Fund (SDRF) for 2019-20, 1 st installment of Rs.340.875 cr. and 2 nd installment of Rs.211.125 cr. has been released to Government of Odisha in advance. On account payment of Rs.788.875 cr., has been released  from  the  National  Disaster  Response  Fund  (NDRF)  during  the  current  year 2019-20 to Government of Odisha in the wake of cyclone 'FANI'.

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