Comprehensive Guide to Centrally Sponsored and Central Sector Schemes

Understanding Centrally Sponsored Schemes and Central Sector Schemes

Centrally Sponsored Schemes (CSSs) and Central Sector (CS) Schemes are essential components of India's governance framework. CSSs are funded by both the Central and State governments in a predefined ratio, while CS schemes receive full funding from the Central government. This structure allows for targeted intervention in various sectors.

Purpose of the Current Review

The current review aims to evaluate 54 CSSs and 260 CS schemes. The primary objectives are to enhance the design of these schemes, eliminate redundant interventions, and ensure that funds are utilized effectively for maximum impact. This comprehensive evaluation is crucial for optimizing government expenditure.

Areas Covered by CSSs and CS Schemes

These schemes span a wide range of sectors, including:

• Health
• Education
• Agriculture
• Social Welfare
• Sanitation
• Water
• Infrastructure
• Environment
• Scientific Research

Role of the 16th Finance Commission

The 16th Finance Commission plays a vital role in this process by determining the norms and resource envelopes for each department’s schemes for the next five years, starting from April 1 next year. This will ensure that resources are allocated efficiently and transparently.

Impact of the Review on Resource Allocation

The review is expected to significantly impact how resources are allocated. By identifying overlaps and inefficiencies, it will help avoid fund wastage and improve implementation. For instance:

• In the health sector, overlapping maternal health and child nutrition schemes may be merged to achieve better outcomes.
• In education, similar skill-development initiatives might be combined for more efficient training.
• Rural irrigation schemes may be integrated with water conservation efforts to enhance impact.
• Social welfare could benefit from direct benefit transfer (DBT) systems to minimize leakages in subsidies and pensions.
• Infrastructure projects may be aligned among different agencies to prevent duplication.

Key Policy Considerations During the Review

Several key policy areas are crucial during this review, including:

• Challenge-mode financing, which encourages competitive project funding.
• Universal Aadhaar-linked Direct Benefit Transfer (DBT) to reduce leakages.
• Merging schemes with similar objectives for cost efficiency.

Responsibility for Conducting the Review

The Development Monitoring and Evaluation Office (DMEO) in NITI Aayog is responsible for evaluating CSSs, while third-party agencies chosen by the ministries are assessing CS schemes. This ensures a thorough and unbiased evaluation process.

Frequently Asked Questions (FAQs)

Q1. What are Centrally Sponsored Schemes (CSSs)?
Answer: CSSs are government initiatives funded by both the Central and State governments in a specific ratio, aimed at targeted development in various sectors.

Q2. What is the role of the 16th Finance Commission?
Answer: The 16th Finance Commission sets the norms and resource allocations for departmental schemes over the next five years, starting April 1 next year.

Q3. How do these schemes affect resource allocation?
Answer: The review aims to identify inefficiencies, preventing fund wastage, and improving the implementation of schemes across sectors.

Q4. Who evaluates the Centrally Sponsored Schemes?
Answer: The Development Monitoring and Evaluation Office (DMEO) in NITI Aayog evaluates CSSs, ensuring a thorough assessment of their effectiveness.

Q5. What are the key policy considerations during the review?
Answer: Key considerations include challenge-mode financing, Aadhaar-linked DBT to reduce leakages, and merging similar schemes for better cost efficiency.

UPSC Practice MCQs

Question 1: What is the funding structure of Centrally Sponsored Schemes (CSSs)?
A) Fully funded by the Central government
B) Funded by both Central and State governments
C) Funded by private entities
D) Funded by local bodies
Correct Answer: B

Question 2: Who is responsible for evaluating CSSs?
A) The Prime Minister
B) The Planning Commission
C) The Development Monitoring and Evaluation Office (DMEO)
D) The Ministry of Finance
Correct Answer: C

Question 3: What is a key focus of the current review of CSSs and CS schemes?
A) Increasing staff salaries
B) Eliminating redundant interventions
C) Expanding the number of schemes
D) Reducing the budget
Correct Answer: B

Question 4: What role does the 16th Finance Commission have regarding government schemes?
A) It determines the scheme's objectives
B) It evaluates the success of the schemes
C) It sets norms and resource allocations
D) It approves new schemes
Correct Answer: C

Question 5: Which of the following is a potential benefit of merging similar schemes?
A) Increased bureaucracy
B) Cost efficiency
C) More paperwork
D) Reduced funding
Correct Answer: B