Central government started process of appraisal and approval of CSSs and the CSs

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Appraisal and Approval of the Centrally Sponsored Schemes (CSSs) and the Central Sector Schemes (CSs) is for their continuation over the next five years.

The new five year cycle will start on 1st April 2026 and is aligned with the 16th Finance Commission (FC) cycle.
There are 54 CSSs and 260 CSs which have their terminal date of approval till 31.03.2026 and are likely to be submitted for re-appraisal.

About appraisal and approval

Mandated by: the 2016 Union Budget, each scheme must have a sunset clause and undergo outcome-based review before continuation.
Evaluation by: The Development Monitoring Evaluation Organisation (DMEO) in NITI Aayog for CSSs and third-party agencies selected by the Ministries concerned for CSs.
Significance: Remove redundancies and ineffective suboptimal interventions, merge schemes and close schemes which have either outlived their utility, enable optimum deployment of scarce public resources, etc.

About Centrally Sponsored Schemes	About Central Sector Schemes
Schemes that are jointly funded by the Central and State Government. Implemented through the State Governments These are in sectors falling in the State and Concurrent List. These are categorised into: Core of the Core Schemes, Core schemes and Optional schemes.	Schemes that are funded 100% by the Union Government Directly implemented by the Central Ministries/Department or its agency. Ordinarily, these are in sectors falling in the Union List