Professional Documents
Culture Documents
Centrally Sponsored Schemes
Centrally Sponsored Schemes
REFERENCE NOTE .
No. 31 /RN/Ref./December /2013
For the use of Members of Parliament
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Constitutional Provisions
The Constitution of India clearly defines the role of Central and State
Governments in the federal structure. As per the constitutional provision, all activities in
Government sphere are categorized as falling in Central List, State List or Concurrent
List. While there is no ambiguity with regard to the Central List and State List, activities
falling under Concurrent List are subject to overlapping of jurisdiction of the Government
of India and the State Governments. States are primarily responsible for major sectors
like health, education, employment, etc. which often involve large public expenditures.
Since successful implementation of development programmes requires availability of
adequate funds, appropriate policy framework, and effective delivery machinery, the
Central Government needs to work with the States to undertake their responsibility in
effective manner. Recognising the higher resource requirements of the States relative to
their resource raising powers, the Constitution mandates to transfer funds to the State
Governments through statutory transfer of tax receipts collected by the Centre through
the Finance Commission award. In addition, the States access central plan funds
through Centrally Sponsored Schemes and Central assistance to State Plans.
1
India, Planning commission, Report of the Committee on Restructuring of CSS, September,2011, pp.3-4
2
The Constitution has under Part-IV mentions the Directive Principles of State
Policy. These inform the policies of various wings of the Government and act as an
overriding philosophical basis. While these are not enforceable in the same way the
Fundamental Rights mentioned in the Constitution, they indicate the overall policies
which should govern various laws. It is, therefore, important that these are fully kept in
mind when the policies for development of the economy are made2.
The number of CSSs should be limited and only those schemes which are
required as a part of the convergence process as a broader scheme have large
outlays so as to make impact across the states to be implemented, the rest to be
weeded out and to be converged with other schemes.
2.
The existing CSSs should be categorised into Flagship schemes that have large
outlays and address major national issues; major sub-sectoral schemes to
address developmental problems of major sectors like agriculture, education and
health and Sector-umbrella schemes which deal with the range of problems of
concerned sector. Details of categorisation of schemes is given in Annexure I.
3.
3
provisions of additional funds based on the States own efforts to increase
outlays for the sector.
4.
The physical and financial norms for the Schemes may be varied depending on
the requirement of the State. A mechanism for developing flexibility in such
norms as against the normal CSS prescription has been suggested. This should
take care of large variation often requested by North East States or States like
Kerala, Rajasthan, Uttarakhand and Himachal Pradesh which have special
needs.
5.
All CSS must have 20 per cent flexi funds (10 per cent for Flagship schemes).
These should be utilised by the States to prepare schemes which are especially
suited for the requirement of that State.
6.
7.
There should be a concurrent monitoring and evaluation of the CSS. This should
be done by independent monitors and put on the website of the concerned
Ministry and the Planning Commission. This assessment could be done by
professional institutions, visit of experts to major project-implementing States or
assessment by individual experts by visits to the field3.
India. Planning Commission, Draft Twelfth Five Year Plan 2012-2017, p. 290.
4
2. Financial outlays should be minimum of Rs. 500 cr per annum.
3. In exceptional cases, schemes with smaller outlays that address interventions in
niche areas like Disability, Tribals, Minorities and Youth may be considered for
inclusion.
In 2013-14, budgetary provisions were made for 137 CSS and 5 other ACA
based schemes (excluding block ACA grant). As part of the restructuring, the Cabinet in
its meeting held on June 20, 2013 has inter alia approved the recommendations of the
Group of Ministers to implement 66 umbrella CSS in the Twelfth Five Year Plan period,
which is placed at Annexure-III. All the 137 CSS and 5 ACA based schemes (total 142)
for which budgetary provisions have been made in 2013-14 were suitably mapped into
the 66 umbrella schemes and 8 of them have been approved to be implemented as
Central Sector Scheme so that no activity / scheme is discontinued. In addition, the
Cabinet has also approved the proposal for providing flexibility in the schemes which
included keeping at least 10% of outlays of CSS as flexi fund and provision for state
specific guidelines which would increase the efficiency of the CSS.4
Flagship Programmes
Some of the important Flagship Programmes being run/ implemented by the
Government of India in various States are as follows:
1.
2.
3.
4.
5.
6.
7.
5
guidelines of the programmes and performance of the scheme upon receiving the
utilisation certificates for the funds earlier provided to them. The Outcome and
Performance Budgets of the respective Union Ministries presented to the Parliament
also inter-alia contain outcomes against targets achieved under various Flagship
programmes.
As far as the Planning Commission is concerned, the Programme Evaluation
Organisation (PEO) has been evaluating, various flagship programmes to assess their
impact on development, from time to time on behest of the implementing Ministries.
The Twelfth Five Year Plan document as approved by the National Development
Council in its meeting held on 27 December 2012 also indicates about broad
assessment of various Flagship programmes. Various stakeholders including State
Governments and experts have been consulted during plan process. In addition,
Planning Commission Advisers also visited the States. The suggestions for
improvement indicated in these assessments are acted upon by the Ministries in
modifying the design and guidelines of various programmes.
The State-wise details of physical targets and achievements as well as financial
performance of various CSSs during the Eleventh Plan are given at Annexure IV. The
scheme wise performance details of major programmes during 2007-12 is given at
Annexure-V 6.
6
appropriate to develop independent monitors and evaluation organizations and to
assess the programmes based on field surveys, field visits by experts and, if possible, a
comprehensive assessment in few selected States.
To ensure meaningful and effective evaluations, the funds of the CSS should be
monitored by independent organizations which are not part of the implementation
process.
It is, therefore, recommended that all CSS must have two ingredients. Firstly,
there should be a regular monitoring mechanism and its parameters should be placed
on the website of the Ministry. Secondly, evaluation should be done by independent
evaluations and monitors. Such assessments should also be considered by the Ministry
for assessing the success of the scheme and making changes.
An important area of evaluation is social audit. Such social audit should be done
in accordance with the well-designed programme7.
Conclusion
Better governance is crucial for translating the large outlays of our Flagship
programmes into enduring outcomes on the ground. Implementation of programmes
may be improved through a multi-faceted approach relying on professionalization of
public service delivery, Total Quality Management, innovative use of IT and other
technologies which improve monitoring and supervision. It can also be improved
through greater emphasis on social mobilisation and capacity building, strengthening of
local institutions, and building deeper partnerships with civil society organisations and
the community to determine the needs and aspirations of the people8.
7
8
India. Planning Commission, An Approach Paper to the Twelfth Five Year Plan 2012-2017, p.11