Paper: GS – II, Subject: Governance, Topic: Government Policies, Issue: Central Sector and Sponsored Schemes.
Context:
The Finance Ministry has issued a circular on June 6th, outlining new criteria for the continuation of government-funded-Schemes, whether fully or partially supported by the Union government.
- These criteria are designed to ensure the effectiveness and efficiency of government spending.
Key Takeaways:
The Central sector-schemes?
- Central sector schemes (CSS) are schemes that are fully funded and implemented by the central government of a country, without any financial contribution from the state or local governments.
Centrally sponsored-scheme?
- These are schemes-that are funded partially by both the Central and State Governments.
- It is a channel which the central government uses to help the states run their plans financially. The amount of state participation varies from state to state.
- Their implementation rests on the Union territories and the States.
- These schemes-are further divided into three categories based on their funding patterns i.e. the core of the core, core and optional.
Finance Ministry’s Circular Overview:
Conclusion:
- This directive is a move toward performance-linked funding, ensuring accountability, better fiscal management, and rationalization of government spending.
- It encourages Ministries to focus on results, cut underperforming schemes, and optimize resources in line with national priorities.
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