The Union Government has reduced the number of centrally sponsored schemes (CSS) from 66 to 28 umbrella schemes, effective from the financial year 2016-17.
These schemes were reduced based on the recommendation of the sub-group of Chief Ministers on rationalisation of centrally sponsored schemes.
- Government has categorised 6 schemes as Core of the Core, 20 schemes as Core Schemes and remaining two as Optional Schemes.
- If required government is also planning to merge the related schemes and implement them as Umbrella Schemes with flexibility to states to administer in the line with their requirements.
- Core schemes: For these schemes, the fund-sharing pattern between the Centre and states would be 60:40 for general category states. For the eight Northeastern and three Himalayan states, ratio is 90:10.
- Core-of-core Schemes: These schemes are fully funded by the Centre. Some of the schemes included in this category are: MGRNEA, National Social Assistance Plan and the National Programme for Persons with Disabilities.
- Optional Schemes: These schemes are for social protection and social inclusion. The fund-sharing pattern between the Centre and states is 50:50 for general category states and 80:20 for Northeastern and hilly states.
- Funds for these schemes will be allocated to states as a lump sum and states would be free to choose which optional scheme they want to adopt.
What are Centrally Sponsored Schemes (CSS)?
- CCS are schemes that are implemented by state governments but are largely funded by the Central Government with a defined State Government share.
- They are basically special purpose grants (or loans) extended by Central Government to states to encourage them to plan and implement programmes that help attain national goals and objectives.
- CSS are basically extended by the Central Government to States under Article 282 of the Constitution. It mainly cover items listed in states list.