Central Sector (CS) Schemes are fully funded and implemented by the Central Government and relate to subjects listed under the Union List of the Constitution.
Key Guidelines
- Central Nodal Agency (CNA): For each Central Sector Scheme, the concerned Ministry or Department will appoint an agency—such as an autonomous body, PSU, or State agency—as the Central Nodal Agency (CNA) to implement it.
- Budgeting and Savings: Ministries should estimate scheme budgets realistically and flag any savings early, especially by the third quarter.
- Unused funds will lapse at the end of the financial year and cannot be carried forward.
- ‘Just-In-Time’ Fund Release: Funds should be released only when needed, with no more than 25% disbursed at once.
- Further releases depend on using 75% of earlier funds and meeting all previous conditions.
Significance of these guidelines
- Efficient Fund Utilization: By limiting releases to 25% at a time and requiring 75% prior utilization, the system ensures that funds are actually used, not just parked.
- Promotes Accountability: Linking new fund releases to proper use of earlier funds strengthens financial discipline among implementing agencies.
Other measures taken to ensure effectiveness of Central Schemes
|
