NARROWING FOCUS Bigger sums likely to be allocated to `core of the core' schemes; at present, there are 50 such schemes
The government may drastically prune the number of centrally sponsored schemes to 30 from 50, a move that will allow it to allocate bigger sums to `core of the core' schemes and deflect criticism that it has neglected some critical areas.The rural jobs scheme under MGNREGA, National Social Assistance Programme and schemes aimed at development of Scheduled Castes, Scheduled Tribes, Other Backward Classes and minorities will be classified as `core of the core' schemes, officials said.The move, they said, is in keeping with the reduced fiscal space with the Centre after it accepted the recommendations of the 14th Finance Commission that gave the states a bigger share of taxes.
The commission had also recommended that the government restrict sector specific transfers to schemes related to education, health, drinking water and sanitation. Subsequently , the Union Bud get for 2015-16 retained 50 of the 66 centrally sponsored schemes, setting aside `. 1.69 lakh crore.
The number may go down further as the sub-group of chief ministers, after due consultation with even non-member states, recommended that the government reduce the number of schemes for improving their visibility and impact, NITI Aayog officials told ET.
The sub-group also sought flexibility for the states to divert funds under the optional schemes to any other component of the schemes within the overall allocation.
Of the 30 schemes suggested by the sub-group, chaired by Madhya Pradesh chief minister Shivraj Singh Chouhan, less than half will form the core schemes, which will be mandatory for states. The centre-state ratio for fund sharing will be 60:40 for regular states and 90:10 for difficult states including eight Northeastern states and three Himalayan states, the sub-group recommended. “Amongst the core schemes, those for social protec tion and social inclusion should form the core of the core and be the first charge on available funds for the national development agen da,“ the sub-group recommended in its report, which was submitted to Prime Minister Narendra Modi last month. The core schemes wil include Pradhan Mantri Gramin Sadak Yojana, Swachh Bharat Ab hiyan, Housing for All, Sarva Shiksha Abhiyan, National Liveli hood Mission, National Health Mission, Integrated Child Development schemes and the Urban Mission including smart cities programme, officials said.
Half of the 30 schemes will comprise of optional schemes wherein participation of states will be optional as per their felt needs and the ratio of fund sharing between the Centre and the states will be 50:50 for regular states and 80:20 for difficult states.
“The states have been given the flexibility of portability of funds from optional schemes (should they choose not to utilise their entire allocation under that head) to any other CSS component within the overall allocation for states under the central assistance to state plan,“ the report recommended.
With effect from the current fiscal, 42% of the net union tax receipts are being devolved to states compared to 32% till last year following the recommendations of the 14th Finance Commission, as a result of which budgetary support for central assistance to state plan has come down to ` . 2.05 lakh crore in the current fiscal from ` . 3.38 lakh crore in 2014-15.
