Archive · 23 Jan 2026
Centre Plans to Rationalize Centrally Sponsored Schemes
The Indian government wants to make changes to how it runs special programs called Centrally Sponsored Schemes (CSSs).
These programs are run together by the central government and the states.
Over 50 of these programs will end this March.
The government thinks these programs are not working well and are hard to manage.
They want to make them better so that money is used more wisely.
Some of these programs have been criticized for not spending money properly and not giving good results.
The government has tried to give states more control over how they use the money, but it's not clear if this has helped.
Some people think these programs should be run either by the central government or the states alone, so it's clearer who is responsible.
The programs were started to help all states provide basic services, but now the government thinks it's time to review them and see if they are still needed.
The Centre plans to rationalize over 50 Centrally Sponsored Schemes (CSSs) ending this March.
CSSs account for over 8% of the total Budget, amounting to ₹4 lakh crore.
Efforts to rationalize CSSs aim to improve efficiency and address inefficiencies highlighted by CAG reports.
States have been given 25% of the central allocation as 'flexifund' to design and implement schemes as per their needs.
Critics suggest CSSs should be run either as wholly central or State schemes for clearer accountability.
- Who
- The Central Government of India
- What
- Plans to rationalize Centrally Sponsored Schemes (CSSs)
- When
- Budget faced with revenue constraints and inflexible expenditures
- Where
- India
- Why
- To improve efficiency of allocations and address inefficiencies
- Total Budget Allocation for CSSs
- ₹4 lakh crore (over 8% of total Budget)
- Number of CSSs Ending
- Over 50 by March 2026
- Flexifund Allocation
- 25% of central allocation for State autonomy
- Target Number of CSSs
- 30 (as per CMs’ panel)
- Current Number of CSSs
- Over 50