CENTRALLY SPONSORED SCHEMES (CSS)

About:

• Centrally Sponsored Schemes (CSS) are the schemes formulated by the Centre on the areas covered under the State List, but are implemented by state governments.
  
  
• Under this, centre assists the state government financially to get schemes implemented. The cost of these schemes is borne on a shared basis in the ratio of 50:50, 70:30, 75:25 or 90:10 with the larger portion is always borne by the Centre.
  
  
• Some prominent CSS include MGNREGA, Pradhan Mantri Gram Sadak Yojna, Swachh Bharat Mission, National Health Mission etc.
  
  

Background:

• The proliferation of the CSSs was debatable until the Ninth Five-Year Plan, when the total number of schemes shot up to 360, accounting for about 60% of Central assistance.
  
  
• In 2013, the Planning Commission announced the merger of several CSSs, reducing them to 66.
  
  
• These were further reduced to 27 following the report of a committee of CMs led by Shivraj Singh Chauhan recently.
  
  

View of FFC:

• According to FFC chairman N.K. Singh, “many Centrally Sponsored Schemes are just boutique in nature, with ‘dubious’ outcomes.” Even the ones which are operational do not justify the high establishment cost being incurred on them.
  • Rationalisation of such schemes would give the State governments greater measure of flexibility in financing. State governments are demanding an increased flow of untied fiscal resources in place of tied resources that come with CSS.