Centrally sponsored schemes should be so structured and financed that it mixes the goals of efficiency and autonomy well. What do you understand by it?
Centrally Sponsored Schemes (CSS) are schemes that are implemented by State governments of India but are largely funded by the Central Government with a defined State Government share. Some examples of such schemes are Mahatma Gandhi National Rural Employment Guarantee Act. These schemes are meant to bring about national standards in conception and implementation of developmental schemes. However, there are many issues of concern: proliferation of CSS, top down approach, provision of flexibility to States to mould schemes according to local requirements, flow of funds, accountability, involvement of PRIs etc. Restructuring of the CCSs need to address these issues.
Untied funds must be transferred to States wherever feasible without losing sight of uniform national development.
The number of centrally sponsored schemes (CSS) should be reduced to 30 from 72.
Increase the share of flexi funds to 25 per cent from the current 10 per cent-funds that can be used according to local priorities.
Union Government should undertake Zero Based Budgeting exercise at least once every five years in consultation with the States.
