M A I N   N E W S

Cabinet okays merger of 147 centrally sponsored schemes
Sanjeev Sharma/TNS

New Delhi, June 21
The Cabinet yesterday approved the Planning Commission's proposal to merge 147 centrally sponsored schemes (CSS) and bring down their number to 66 across various sectors. The step is aimed at providing flexibility to the states in their better implementation.

These include 17 flagship schemes, including NREGA programmes, with significant outlays for health, education, irrigation, urban development, infrastructure, including rural infrastructure, skill development.

Planning Commission Deputy Chairman Montek Singh Ahluwalia said the restructuring of the schemes would provide more flexibility to the states in their implementation. The full implementation of the exercise would be completed in the next financial year, he added.

Ahluwalia said discussions with the chief ministers had already been completed. Earlier, the National Development Council (NDC), while approving the12th plan in its meeting in December 2012, had also recommended allowing flexibility in the schemes to suit the requirements of the state governments.

The Cabinet has also approved that a scheme may have state-specific guidelines recommended by an inter-ministerial committee constituted for the purpose.

The financial assistance under these schemes would be provided to the states through the consolidated funds of the states. To bring desired flexibility, the Cabinet allowed to keep 10 per cent of the outlay as flexi-funds.

For each new scheme, at least 25 per cent of funds will be contributed by the general category states and 10 per cent by the special category states, including Jammu and Kashmir, Himachal Pradesh and Uttarakhand. These arrangements will come into force for the remaining years of the 12th Five-Year Plan and will help in optimum utilisation of resources.

Concerned over proliferation of CSS, Finance Minister P Chidambaram had announced in his Budget speech that "the schemes will be restructured into 70 schemes. Each scheme will be reviewed once in two years".