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News Summary

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Central Schemes may Not See Change in Allocation for FY26
  • The Economic Times
  • |
  • Polity and Governance
  • |
  • 2025-01-03
  • Central Sector Scheme
  • Rationalisation of Schemes

The government's allocation for centrally sponsored schemes in 2025-26 is expected to remain around ₹5.05 lakh crore, focusing on consolidation and efficient fund utilization. Improved monitoring and the Single Nodal Agency (SNA) system are key strategies for cost savings.

Government Allocation for Centrally Sponsored Schemes

The government plans to maintain the allocation for Centrally Sponsored Schemes (CSS) at approximately ₹5.05 lakh crore for the fiscal year 2025-26. This decision comes amid efforts to monitor funds closely and consolidate various schemes.

Key Points

  • The allocation for CSS had seen a 9.8% increase in FY24.
  • Efficient fund utilization through technology and enhanced efficiency measures has been prioritized.
  • The government anticipates saving around ₹30,000 crore in the current fiscal year due to stricter expenditure tracking and slow spending by states.
  • As of December 1, 2024, about ₹40,000 crore remained unspent in government balances.

Single Nodal Agency (SNA) System

The transition to a Single Nodal Agency (SNA) system has facilitated better monitoring of fund usage. The central government intends to include all states on the portal by the next fiscal year, with eight states joining in 2024, bringing the total to 18.

Flagship CSS Programmes

  • Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY)
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • Pradhan Mantri Awas Yojna-Urban and PMAY-Gramin
  • Jal Jeevan Mission (JJM)
  • Pradhan Mantri Gram Sadak Yojna (PMGSY)

Rationalisation of CSS

The government is working towards further rationalization of CSS. In March 2015, a sub-group of chief ministers was formed by Prime Minister to address this issue, resulting in a reduction of the number of schemes from 130 to 75.

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