Economic and Political WeeklyFebruary 3, 2007
registered societies, and local bodies. However, it is not possibleto identify the final recipients of these CSS from the budgetdocuments, detailed demand for grants or the outcome budgets.This was done by examining the detailed guidelines of all theseschemes. These CSS are then grouped into those going to thePRIs/district rural development agency (DRDA) and those goingto other agencies like districts authorities and state/districtlevel registered societies. CSS routed through the state budgetand going to PRIs can be identified from the respective stategovernment budgets and form part of the overall state assistanceto PRIs.After identifying the CSS bypassing the state budget and thefinal recipients of these, they have been quantified for theyear 2006-07 using central budget documents and the detaileddemands for grants of each ministry/department. From the budgetdocuments for the year 2006-07 a total of 195 CSS have beenidentified of which 41 bypass the state budget and the remaining154 are routed through the state budgets (Annexures 1 and 2).In 2006-07 total CSS flow to the states amounted to Rs 61,318.48crore as can be seen from the chart, which gives details of thecentral flow to the states in the form of assistance throughCSS and transfers based on recommendations of the CentralFinance Commission. The CSS going through the statebudgetamounted to Rs 24,802.28 crore and those bypassingthestate budget amounted to Rs 36,516.20 crore in the year2006-07.Out of the 41 schemes bypassing the state budgets 10 schemesamounting to Rs 21,407.90 crore in 2006-07 have been identifiedas reaching the PRIs, as can be seen from Table 1. These areSampoorna Grameen Rozgar Yojana (SGRY), National Food forWork Programme (NFFWP), Swarnjayanti Gram SwarozgarYojana (SGSY), Indira Awaas Yojana (IAY), National RuralEmployment Guarantee Scheme (NREGS).
Integrated Waste-lands Development Programme (IWDP), Drought Prone AreasProgramme (DPAP), Desert Development Programme (DDP),Central Rural Sanitation Programme (CRSP) and Member of Parliament Local Development Scheme (MPLADS).
The proportion of total CSS funds routed through the statebudget and those bypassing it is illustrated in Figure 1. The CSSfunds bypassing the state budget constitutes 59.55 per cent of total CSS funds in the year 2006-07 and 34.91 per cent of totalCSS funds go directly to the PRIs/DRDA. Thus, from the abovediscussion it is clear that a larger proportion of CSS fundsbypass the state budgets and a sizeable part of it goes directlyto the PRIs.
IICSS Fund Flow to PRIs in Madhya Pradesh
In the earlier section, we identified the CSS under which fundsreach PRIs bypassing the state budgets. In the chart we indicatedthe total amount going to PRIs under these schemes. However,the state-wise allocation is not based on any predeterminedformula. In order to get state specific figures for the CSS fundreaching the PRIs, we have in this paper concentrated on eightmajor schemes that account for 91 per cent of the total CSS fund
@Excludes Central Assistance to State Plans.(1)PRIs include DRDA which manages the funds received under differentpoverty alleviation programmes to be implemented by the PRIs.(2)We have assumed that 75 per cent of the funds under MPLADS arespent in the rural areas and PRIs are the preferred implementingagencies.(3)Using the trend growth rate (10.296 per cent) for the period the newGDP base was projected for 2006-07 which amounts to Rs 38,95,071crore.(4)We have assumed that the entire funds under NREGS go to PRIs.
Table 1: Centrally Sponsored Schemes Reaching PRIs
(In Rs crore)
SlSchemes2006-07No(BE)1Sampoorna Grameen Rozgar Yojana (SGRY)30002National Food for Work Programme (NFFWP)03Swarnjayanti Gram Swarozgar Yojana (SGSY)12004Indira Awaas Yojana (IAY)29205National Rural Employment Guarantee Scheme (NREGS)113006Integrated Wastelands Development Programme (IWDP)4537Drought Prone Areas Programme (DPAP)3608Desert Development Programme (DDP)2709Central Rural Sanitation Programme (CRSP)72010Member of Parliament Local Development Scheme(MPLADS)1185Total21408
Expenditure Budget 2006-07
, Vols 1 and 2, Ministry of Finance,GoI, 2006.(2)Detailed Demand for Grants, various ministries for 2006-07,GoI, 2006.
Figure 1: CSS through State Budget and BypassingState Budget
CSS through StateBudget 40.45 per centCSS bypassing StateBudget 59.55 per centPRIs34.91per centOthers24.64per cent
Chart: Central Assistance to the States, 2006-07
Central Assistance states @Rs90,724.98 crore(2.33 per cent of GDP)Centrally Sponsored Schemes(195 schemes)Rs 61,318.48 crore(1.57 per cent of GDP)
Twelfth Finance CommissionGrants payable to statesRs 29,406.50 crore(0.75 per cent of GDP)CSS through State Budget(154 Schemes)Rs 24,802.28 crore(0.64 per cent of GDP)CSS By-passing State Budget(41 Schemes)Rs 36,516.20 crore(0.94 per cent of GDP)CSS reaching PRIs(10 Schemes)Rs 21,407.90 crore(of which NREGSRs 11,300 crore)CSS reaching otheragencies(31 Schemes)Rs 15,108.30 crore