Govt kick-starts revamp of Centrally Sponsored Schemes
As part of the expenditure reforms, the Niti Aayog has initiated a process for revamping of Centrally Sponsored Schemes (CSSs), which account for over 10% of the Centre’s annual budget outlay, to assess each scheme’s relevance, effectiveness and sustainability.
The Development Monitoring and Evaluation Office (DMEO) of the think tank has invited proposals to engage consultancy firms to support the evaluation of CSSs in nine broad sectors. These are the Agriculture and Allied Sector; Women and Child Development; Education, Urban Transformation & Skill Development; Rural Development Sector; Drinking water and sanitation; Health Sector; Water Resources, Environment and Forest Sector; and Social Inclusion, Law & Order and Justice Delivery.
Currently, there are about 75 CSSs – these have an outlay of Rs 5 trillion in FY25, 10.4% of the Centre’s budget of Rs 48.2 trillion for the year.
The government seems to cut down the number of schemes, and merge schemes as well as set sunset clauses to stop running them indefinitely.
“(Consultants) To provide recommendations based on the synthesis of sectoral and scheme- level analysis, on the need to continue the schemes in their existing form, modify, scale-up, scale-down or close down the schemes,” DMEO said in terms of reference for consultants. “(Also) Suggest revisions in the scheme/schemes design for the effective implementation in future, if modification is recommended.”
The consultants would also be required to assess the implication of transferring funds directly to States with complete freedom to implement schemes, a key demand of some states in the past.
For analysis, schemes can be classified into two categories: (a) those introduced prior to the 15th Finance Commission cycle; and (b) those that were introduced during the 15th Finance Commission cycle. Schemes that were launched prior to the 15th Finance Commission cycle (prior to 2019-20) are more amenable to full-scale evaluation.
Some of the major centrally sponsored schemes include Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY), Pradhan Mantri Awas Yojna (PMAY)-Urban and Gramin (PMAY-G), Jal Jeevan Mission (JJM) and Pradhan Mantri Gram Sadak Yojna (PMGSY).
After revamping the CSSs in 2015, some schemes which were being implemented as 100% centrally funded schemes like PMGSY, are now funded in 60:40 ratio in plain areas and 90:10 in Northeast and hilly states.
Officials reckon that there is a strong need to build institutional capacity in the states and shift to well-designed output-based transfers while rationalizing the multiplicity of central schemes.