States gets more liberty to spend money under CSS

Giving more freedom to states to spend funds under Centrally Sponsored Schemes (CSS) to meet local developmental requirements, the government has announced new guidelines called flexi-fund for states with aim to meet local needs and requirements and pilot innovation to improve efficiency. As per the new guidelines, flexi-funds in each CSS have been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories.

Now, states can use the fund to undertake mitigation or restoration activities in case of natural calamities or to satisfy local requirements in areas affected by internal security disturbances. It also stated that states if they want can set aside 25 per cent of any CSS as flexi-fund to be spent on any sub-scheme or component or innovation that is in line with the overall aim and objective of the approved Scheme.

The guidelines however said that the state governments will have to constitute a state-level sanctioning committee to avail of the flexi-fund facility. The flexi-fund facility is not for CSS which emanate from legislation, like MNREGA.

Based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of CSS. The rationalisation is expected to ensure optimum utilisation of resources with better outcome through area-specific interventions. This would also ensure wider reach of benefits to target groups. Centrally Sponsored Schemes (CSS) are schemes that are implemented by State governments of India but are largely funded by the Central Government with a defined State Government share.