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State suspends funding for CSS till July

May 23, 2015 12:00 am | Updated 02:31 pm IST - THIRUVANANTHAPURAM

Finance dept. acts on Planning Board directive

: The implementation of Centrally sponsored schemes (CSS) in the State would come to a halt with the Finance Department temporarily putting the brakes on providing funds for the schemes till July.

The State Planning Board had directed the department to put fund release on hold till the Union government took a decision on sanctioning its due, the NITI Aayog clarified on the funding pattern and also the proposed rationalisation of the schemes.

Planning Board Member-Secretary Alok Sheel, who convened a meeting of government Secretaries here on May 11 to discuss the outcome of the rationalisation of the schemes and other consequences, had apprised them of the board’s decision.

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Move’s impact

Putting funding on hold would have a direct bearing on the implementation of welfare scheme for women, children, the marginalised and the minorities.

The NITI Aayog had taken a decision to restructure the schemes in the backdrop of the increase in the14th Finance Commission award to the States and the Union Budget proposals for the current year.

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Centre’s proposal

The Union Finance Ministry and the Department of Expenditure had proposed to restructure the 66 existing schemes into 20 on the premise that about 85 per cent of the Central assistance was concentrated on 17 flagship programmes.

This was also based on the argument that reducing the numbers would not lose any ground and fully achieve the millennium development goals.

The NITI Aayog had also constituted a sub-group of Chief Ministers, including Chief Minister Oommen Chandy, for rationalising the schemes and it would meet in Bhopal on May 28.

Vertical devolution

The May 11 meeting felt that the present proposal has been put forward on the presumption that the fund transfer to the States through vertical devolution following the Finance Commission recommendations was sufficient to undertake many of the Centrally Sponsored Schemes that have so far been funded through Central assistance.

Annual Plan

It cautioned that the reduction in number of schemes should not affect the interests of the State and development of critical areas and wanted the allocation for all schemes included in the annual Plan to continue.

The meeting also reiterated the persistent demand for more flexibility to select, modify and design schemes that are more relevant to the prevailing circumstances in the State.

Government Secretaries apprised of board’s decision

Move may impact schemes for women, marginalised sections

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