1.Centrally Sponsored Schemes Reform (Centrally Sponsored Schemes)
What & Where
Centrally Sponsored Schemes: Centre–State cost-shared programmes on State/Concurrent subjects; money enters State Consolidated Fund.
Present basket: 54 schemes classified as Core of Core, Core, Optional; implemented across all states/UTs.
2025 CAG committee reviewing CSS budgeting, accounting, payments, SDG linkage.
Quick Facts for MCQs
Funding Pattern
- Allocation: 60:40 standard, 80:20 select sectors, 90:10 North-East, tribal, hilly special states
- Centre spends 8 paise per rupee on CSS, roughly a tenth of Union budget
- Funds routed exclusively through each State’s Consolidated Fund before utilisation
Operational Challenges
- Transparency: Budgets often merge Centre and State shares, masking CSS outlay, hindering SDG mapping
- Fund flow: Irregular releases trigger project delays, year-end spending rush, idle balances
- Payments: DBT hampered by beneficiary data errors, banking glitches, weak real-time tracking
Reform Proposals
- Budgeting: Uniform heads, SDG-tagged line items, 3-year rolling allocations, 10–15 % performance linked
- Accounting: National template, common codes, compulsory State IFMIS sync for consolidation and CAG audit trail
- Technology: AI analytics and mobile monitoring detect anomalies; Aadhaar-based authentication, grievance redress via CSCs
Key Data Points
| Feature | Data-Point |
|---|---|
| Current CSS count | 54 |
| Central Sector Schemes count | 260 |
| Union budget share to CSS | ≈ 10 % |
| Standard funding ratio | 60 : 40 (Centre : State) |
| N-E / Special Category ratio | 90 : 10 |
| Core-of-Core example | MGNREGA |
| CAG constitutional article | Article 148 |
| CAG tenure ceiling | 6 yrs or 65 yrs |






