Friday, 12 October 2012

Planning Commission to have discretionary powers on release of funds to States

The Planning Commission has decided to restructure 16 Centrally Sponsored Schemes (CSS) into Additional Central Assistance (ACA) Schemes. The new funding pattern will be effectivefrom2013-14.

While restructuring the CSSs will give more flexibility to the States to utilise the funds, it will also give the Planning Commission absolute control over the quantity of money to be released. CSS funds are routed through the Ministries, but once the new system is in place as many as 11 ministries will lose monetary control over their schemes. It is feared that the new funding pattern could be used as a political tool by the Centre to discriminate between States on the basis of the party in power. 


It is the Ministries concerned that release funds for the CSS. But, under the new set up the Planning Commission will release the funds directly to the States on the recommendation of the Finance Ministry. The ministries concerned will only monitor the implementation of the schemes, which would be evaluated by an external agency.

The schemes to be restructured include flagship programmes such as the Integrated Child Development Scheme, the Mid Day Meal Scheme, the Sarva Shiksha Abhiyan, the Mahatma Gandhi National Rural Employment Guarantee Scheme, the Indira Awas Yojana, the Pradhan Mantri Gram Sadak Yojana, and the yet-to-be launched National Health Mission.

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