Niti Aayog panel for raising State’s discretionary funds


Seeks freedom to become partners in non-core projects

The Niti Aayog sub-committee on Centrally sponsored projects has recommended raising the States’ discretionary utilisation of funds from 10 to 25 per cent, depending on prevailing circumstances.

The committee, including Chief Minister Oommen Chandy, has recommended that States be given the freedom to become partners in non-core projects. It has also proposed that the States be permitted to divert their share for optional schemes to other Centrally sponsored projects.

The panel has mooted the idea of bringing all Centrally sponsored projects under a single umbrella for better implementation.

The projects have been categorised into two — core of the core and core and optional. States will be required to have participation in the core projects, including the Mahatma Gandhi National Rural Employment Guarantee Scheme and urban development projects.

The Centre will foot 90 cent of the cost of core projects and 80 per cent of the cost of optional projects for the eight North Eastern States, Uttarakhand, Himachal Pradesh and Jammu Kashmir. For other States, it will bear 60 per cent for core projects and 50 per cent for optional projects, leaving the States to foot the remaining expense.

The panel has stressed the need for a transparent mechanism involving States and Union Ministries to allocate Centrally sponsored projects. It has also called for a monitoring and assessment system in consultation with States.

Proposal to let States divert funds for other schemes

Centre to foot 90% of cost of core projects

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Printable version | Jan 28, 2020 3:25:14 PM |

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