Chief Ministers' panel constituted by NITI Aayog to rationalise the centrally sponsored schemes (CSS) has made a case for reduction of their number and hiking flexi fund component to 25 per cent from existing 10 per cent.
"We have submitted the final report to Prime Minister Narendra Modi today," said Madhya Pradesh Chief Minister Shivraj Singh Chouhan, who is convener of the Chief Ministers' Sub-Group on CSS.
Chouhan said the report has recommended the reduction of CSS and there are around 50 such schemes run by government.
He further said that the panel has suggested increasing the flexi fund component in the CSS to 25 per cent from existing 10 per cent for giving more leeway to states for spending money for development and social welfare.
Chouhan said that that panel has categorised CSS into three categories -- core of the core, core and optional scheme -- for determining funding pattern.
For core of the core schemes like MNREGA, the panel has suggested no change in the fund sharing between the Centre and state as the existing arrangement can do like in rural employment scheme MNREGA where funding ratio is 90:10 between Centre and state.
In case of core schemes, the panel has suggested that fund sharing should be in the ratio of 90:10 between the Centre and state for difficult states like those in the North-East and Jammu & Kashmir.
For ordinary states, the funding should be shared between the Centre and state in the ratio of 60:40 in case of core schemes.
In case of optional schemes, the Centre and state share should be in the ratio of 80:20 in case of difficult states and 50:50 in case of ordinary states.
Modi tweeted: "I congratulate the CMs who came together and worked on the report on Rationalization of Centrally Sponsored Schemes."
Chouhan said the report has suggested to allow states to provide cost norms for different projects as expenditure on creating same set of assets varies from state to state depending upon their geographic location and conditions.
He further said that the panel wants the Centre to release second installment of funds for a project or scheme on submission of utilisation certificate for first installment to avoid delays in implementation.
The panel is also of the view that the union territories need not implement all schemes and they should decide with central government to implement few important schemes as per their requirement.
The panel has also recommended the review of the CSS every two years and wants NITI Aayog to sit with all states once in six months to review the progress of CSS for effective monitoring.
Chouhan said that along with him, Chief Minister of Jammu & Kashmir Mufti Mohammad Sayeed, Jharkhand Chief Minister Raghubar Das, Rajasthan Chief Minister Vasundhra Raje, Manipur Chief Minister Okram Ibobi Singh and Telangana Chief Minister K Chandrashekhar Rao were present while submitting the report.
