How do Centrally Sponsored Schemes differ from Central Sector Schemes? Highlighting the concerns raised by some states regarding Centrally Sponsored Schemes, suggest remedial measures.
Introduction
Schemes are at the centre of government initiating to achieve the goal of welfare state. It is a tool to extend the benefits and carry out development related activities. It is broadly of three types.
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Main Body
Centrally Sponsored Scheme: funding pattern is 50:50 among normal states. 70:30 for scheduled states. 90:10 for himalayan states etc. or from Atasians. Central Sector Scheme: under 100% funding done by central government eg PM Malayan etc. Concerns raised by some states regarding Centrally Sponsored Scheme: 1. Untimely disbursal of funds: states such as Kerala, Odisha have accrued the curse of disparities in fund allocation. 2. Tied funds: centrally sponsored schemes have funds tied to the atheme taken by the states, the undermines the financial freedom. 3. Discrimination among the states. 4. Leads to North-South divide in accounted of funds.
Remedial measures for these issues: 1. The differentiation between centrally sponsored and central sector must be based on proper consultation with the states. 2. Timely devolution of funds should be followed. 3. Identification as blueprint should be the sole objective of state governments. 4. Uniform treatment among the states. 5. Development schemes should be given priority over populace schemes. Way forward: the lacunae existing in the centrally sponsored scheme must be done away to realise the goal of inclusive growth and welfare state.
Conclusion
The lacunae existing in the centrally sponsored schemes must be done away to realise the goal of inclusive growth and welfare state.
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Diagram
A hierarchical diagram showing 'Schemes' branching into 'Centrally Sponsored Scheme' (with sub-branches showing funding patterns for normal states, scheduled states, himalayan states) and 'Central Sector Scheme' (showing 100% funding by central government)
SHIVAM SINGH
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Centre-State Financial Relations
Centrally Sponsored Schemes
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