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Recommendations of the Sub-Group of Chief Ministers on Rationalisation of Centrally Sponsored Schemes
Aug 10, 2016

The Union Government has accepted the major recommendations of the Sub-Group of Chief Ministers on Rationalisation of Centrally Sponsored Schemes (CSSs). A consensus was reached on many contentious issues not only between the States represented on the Sub-Group but other States/UTs also through regional consultations and meetings with Union Ministries/Departments.

  • The Sub-Group had examined 66 CSSs and recommended that the number of CSSs should not normally exceed 30.
  • The rationalization of the CSSs would ensure optimum utilization of resources with better outcomes through area specific interventions.
  • This would also ensure wider reach of the benefits to the target groups.
  • The Sub-Group was set up in pursuance of the decision taken in the first meeting of the Governing Council of NITI Aayog held on 8th February 2015.

The Guiding Principles of the Sub-Group had been to resolve the issues between Union and the States /UTs and to work as Team India in the spirit of Cooperative Federalism towards realization of the goals of VISION 2022 when the nation will celebrate the 75th year of Independence.

Two Main Objectives of the VISION 2022

1. Providing basic amenities to all citizens in an equitable and just manner for ensuring a life with self-respect and dignity
2. Providing appropriate opportunities to every citizen to realize his/her potential.

Major Recommendations of the Sub-Group

  • No. of Schemes: The total number of schemes should not exceed 30.
  • Categorisation of Schemes: Existing CSSs should be divided into Core and Optional Schemes.
    • Core schemes: Focus of CSSs should be on schemes that comprise the National Development Agenda where the Centre and States will work together in the spirit of Team India.
    • Core of the Core Schemes: Those schemes which are for social protection and social inclusion should form the core of core and be the first charge on available funds for the National Development Agenda.
    • Optional Schemes: The Schemes where States would be free to choose the ones they wish to implement. Funds for these schemes would be allocated to States by the Ministry of Finance as a lump sum.

Funding Pattern of the Schemes

  • Core of the Core Schemes: Existing Funding pattern of the Core of the Core Schemes would continue.

Core Schemes:

  • For 8 North Eastern States and 3 Himalayan States: Centre: State: 90:10
  • For other States: Centre: State: 60:40
  • For Union Territories (without Legislature): Centre 100% and for UTs with legislature existing funding pattern would continue.

Optional Schemes:

  • For 8 North Eastern States and 3 Himalayan States: Centre: State: 80:20
  • For other States: Centre: State: 50:50 For Union Territories: (i) (without Legislature): Centre 100%, (ii) Union Territories with Legislature: Centre-UT:80:20

Flexibility and Flexi-funds to the States/UTs

  • While designing the CSS, the Central Ministries shall permit flexibility in the choice of components to the States as available under the Rashtriya Krishi Vikaas Yojana (RKVY).
  • Moreover, the flexi-funds available in each CSS has been raised from the current level of 10% to 25% for the States and 30% for the UTs of the overall annual allocation under each Scheme so that the implementation can be better attuned to the needs of individual State /UT.


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