Revamping Centrally Sponsored Schemes: Strengthening Governance for Inclusive Development

Why in News?

The NITI Aayog has initiated a comprehensive overhaul of Centrally Sponsored Schemes (CSS) as part of ongoing administrative reforms. The Development Monitoring and Evaluation Office (DMEO) of NITI Aayog has invited proposals from consultancy firms to assist in evaluating CSS across nine key sectors, including Agriculture and Allied Sectors; Women and Child Development; Education, Urban Transformation & Skill Development; Rural Development; Drinking Water and Sanitation; Health; Water Resources, Environment, and Forests; Social Inclusion; and Law & Order and Justice Delivery. Click here for more.

Understanding Centrally Sponsored Schemes (CSS)

Centrally Sponsored Schemes (CSS) are collaborative initiatives between the central and state governments, designed to address critical socio-economic challenges. These schemes span various sectors such as education, health, agriculture, infrastructure, and rural development. While the central government provides a significant portion of the funds, state governments contribute the remaining share to ensure effective implementation.

Key Features of CSS:

1. Shared Financial Responsibility:

• CSS follows a cost-sharing model between the central and state governments.
• For most states, the funding ratio is 60:40 (Central: State).
• Special category states, including Northeastern states, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand, receive funds on a 90:10 basis.

1. State-Led Implementation:

• While CSS are centrally funded and designed, states handle their execution, allowing for flexibility in catering to local requirements.

1. Sector-Specific Focus:

• These schemes address key developmental areas such as poverty reduction, healthcare, education, agriculture, and rural infrastructure.

1. Guidelines and Monitoring:

• The central government sets operational guidelines and monitors progress, requiring states to provide periodic reports.

Types of Centrally Sponsored Schemes:

1. Core of the Core Schemes:

• These schemes are fundamental to social welfare and poverty alleviation. Examples:
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): Provides 100 days of wage employment to rural households.
• National Social Assistance Program (NSAP): Offers financial aid to the elderly, widows, and persons with disabilities.

1. Core Schemes:

• Focus on human development and infrastructure. Examples:
• Pradhan Mantri Awas Yojana (PMAY): Aims to provide affordable housing.
• National Health Mission (NHM): Strengthens healthcare services.
• Pradhan Mantri Gram Sadak Yojana (PMGSY): Enhances rural connectivity.

1. Optional Schemes:

• States can choose to implement these schemes based on their priorities.

Major CSS Initiatives:

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY): Enhances irrigation and water efficiency.
• Swachh Bharat Mission (SBM): Focuses on sanitation and hygiene improvement.
• Mid-Day Meal Scheme (MDMS): Provides free school meals to improve child nutrition.
• National Food Security Mission (NFSM): Promotes food grain production.
• Integrated Child Development Services (ICDS): Supports early childhood care and maternal health.

Significance of CSS:

1. Equitable Development: Ensures alignment between national goals and state-level initiatives.
2. Reducing Regional Disparities: Targets backward regions and marginalized communities.
3. Driving Reforms: Introduces policy innovations and best practices.
4. Direct Support to Vulnerable Groups: Focuses on empowering women, children, farmers, and the economically disadvantaged.

Challenges in CSS Implementation:

• Delays in Fund Disbursement: Slow transfer of funds affects timely execution.
• Rigid Guidelines: Some schemes do not allow flexibility for state-specific modifications.
• Duplication of Efforts: Overlapping schemes may lead to inefficiencies.
• Monitoring Issues: Ensuring transparency and accountability remains a challenge.
• Limited State Capacity: Some states struggle with administrative and infrastructural constraints.

CSS vs. Central Sector Schemes (CS):

Criteria

Centrally Sponsored Schemes (CSS)

Central Sector Schemes (CS)

Funding Pattern

Shared between Centre & States

Fully funded by the Centre

State Contribution

Yes (60:40, 90:10, etc.)

No

Implementation

Managed by states

Executed by central agencies

Focus Areas

Sectoral development

National priorities

Control & Monitoring

Shared oversight

Fully controlled by Centre

Examples

MGNREGS, PMAY, NHM

PM-KISAN, Beti Bachao Beti Padhao

Conclusion:

Centrally Sponsored Schemes (CSS) play a vital role in India’s development strategy, providing necessary financial and policy support to states. While these schemes have significantly contributed to poverty alleviation, infrastructure growth, and social development, addressing challenges related to implementation efficiency, accountability, and state-specific adaptability will be essential to maximizing their impact.

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