In order to implement and efficiently monitoring the 12th Five Year Plan, Union Cabinet is likely to consider a proposal to merge the 147 Centrally Sponsored Schemes (CSS) into 70 across various sectors. Last month, a Group of Ministers (GoM) panel had approved the proposal for merging of 147 CSS into 70.
The proposal includes the setting up of a flexi-funds system in each scheme, under which state governments can use 10 percent of the Budget allocated for CSS within the broader framework of the flagship programme. It also proposed the transferring of funds from the central government to the state consolidated funds and not directly to the implementing agencies, which will ensure effective utilisation of funds under CSS. Moreover, the proposal also contains the setting up of state specific guidelines in each centrally sponsored schemes, which will be reviewed once in two years.
The GoM is considering the restructuring of CSS to resolve differences among ministries like the Tribal Affairs and Agriculture, which wanted to maintain some of the schemes for development of the sector.