Following are
the highlights of the Chief Minister’s sub group report on rationalization of
centrally sponsored scheme under the aegis of NITI Aayog which was constituted
on March 9,2015 by the Prime Minister in pursuance of the decision taken in the
first meeting of the Governing Council of the NITI Aayog held on 8th
February, 2015:
Formation of
the Sub-Group
·
The
Sub-Group of Chief Ministers on the rationalization of Centrally Sponsored
Schemes (CSS) was constituted on March 9, 2015 by the Prime Minister in
pursuance of the decision taken in the first meeting of the Governing Council
of the NITI Aayog held on February 8, 2015.
·
Chief
Ministers of Arunachal Pradesh, Jammu & Kashmir, Jharkhand, Kerala,
Manipur, Nagaland, Rajasthan, Telangana, Uttar Pradesh and Lt. Governor of A
& N Islands are Members of the Sub-Group. The Chief Minister Madhya Pradesh
is Convener and CEO, NITI Aayog is Coordinator of the Group. The Sub-Group
undertook extensive consultations with the Central Ministries, including the
Ministry of Finance, NITI Aayog and States and UTs including those which were
not represented by their Chief Ministers/ LGs in the Sub-Group. In addition, at
the instance of the Sub-Group, CEO/NITI Aayog undertook regional consultations
at official level at Kolkata, Chandigarh, New Delhi and Hyderabad with
States/UTs. The Sub-Group itself met four times and has finalized its recommendations
on the basis of such extensive consultations. In this endeavor, the Sub Group
has been assisted by a Working Group of senior officers drawn from NITI Aayog,
Central Ministries and States/UTs.
·
It
is matter of great satisfaction that despite such wide ranging consultation,
this report has the broad agreement of not only the member chief ministers but
also of the non-member states
Guiding Principles
·
The
formation of the Sub-Group is testimony to the resolve of the Union and the
States /UTs to work as Team India in the spirit of Cooperative Federalism
towards realisation of the goals of VISION 2022 when we will celebrate the 75th
year of Independence. The objectives of the VISION are broadly: (a) providing
basic amenities to all citizens in an equitable and just manner for ensuring a
life with self-respect and dignity, and (b) providing appropriate opportunities
to every citizen to realize her potential.
·
For
realising VISION 2022, the Governing Council of NITI Aayog is engaged in
developing the contours of the National Development Agenda. CSS are key
instruments for meeting the objectives outlined in the National Development
Agenda.
·
The
sectors covered under the National Development Agenda are critical to the
transformation of India and the outcomes will transcend State boundaries. Since
a significant amount of Plan Transfers to States/UTs are routed through CSS,
and since many CSS interventions are in the social sectors, it is imperative
that they are designed to be effective and outcome-oriented. Moreover, they
should be adequately funded and their implementation should be sufficiently
flexible to enable the States to efficiently implement them according to local
requirements and conditions.
Provision for CSS in Union Budget of 2015-16.
·
In
the Union Budget for 2015-16, CSS are classified as Central Assistance to State
Plan (CASP). In 2014-15, budgetary provisions were made for 66 CSS of which 17
large schemes were designated as ‘flagship’ programmes.
·
With
effect from BE 2015-16, following the acceptance of the recommendations of the
14th Finance Commission (FFC) by Government of India, the devolution
to States has increased from 32% to 42% of the net Union Tax Receipts. In
absolute terms, it is estimated that this entails additional devolution of Rs.
1.78 lakh cr to the States. As a result, the fiscal space available with the
Union Government to fund CSS has shrunk.
·
The
14th FC has recommended that sector-specific transfers from the
Union to the States/UTs should be confined to sectors like education,
health, drinking water and sanitation. However, in view of the preponderance of
CSS being interventions in key sectors of national importance, the Government
of India has retained 50 of the 66 ongoing CSS in Budget 2015-16. The balance
are being either taken into the Central sector, or reformulated as new Umbrella
Schemes or have been transferred to the States.
·
Hence,
post-14thFC devolution, the BE for Central Assistance to State Plan
(CASP) has been reduced from Rs. 3.38 lakh cr in 2014-15, to Rs. 2.05 lakh cr
in 2015-16. The BE for CSS has reduced from Rs. 2.52 lakh cr to about Rs. 1.69
lakh cr (excluding provision for CSS for UTs).
Rationalisation of CSS: Perspectives of Centre,
State and UTs:
·
Henceforth
only Schemes/Programmes in CSS in key identified sectors will comprise the
National Development Agenda.
·
The
number of Schemes/Programmes should be reduced for improving their visibility
and impact.
·
Investment
in Core Schemes/Programmes should be maintained at least at their current
level.
·
While
deciding the funding pattern, special dispensation needs to be given for North
Eastern and Himalayan States and UTs.
·
States
should be given flexibility in the implementation of the Schemes.
·
Given
their critical role in successful implementation of Schemes, the support from
the Centre for remuneration of grass-root workers like ASHA, Aanganwadis,
Contract Teachers etc. should be maintained at present levels for at least two
years.
·
The
processes and procedures for release of Central Assistance (CA) to the States
under these Schemes should be simplified.
·
There
should be a degree of certainty regarding the availability of funds and Central
Assistance likely to be available under these Schemes in the medium term.
·
Projects/activities
that are already sanctioned earlier under these schemes should be completed for
which adequate provisions should be made.
·
NITI
Aayog should emerge as a platform for addressing problems in implementation of
Schemes/Programmes under the National Development Agenda.
Major
Recommendations at a glance:
·
Focus
of CSS should be on the Schemes that comprise the National Development Agenda
where the Centre and the States will work together in the spirit of Team India.
·
Sectors/
tasks/objectives like Poverty Elimination including MGNREGA and Schemes for
social inclusion; Drinking water and Swachh Bharat Mission; Rural Connectivity
including Electrification; Access Roads and Communications; Agriculture
including Animal Husbandry, Fisheries and Irrigation; Education including Mid
Day Meal; Health, Nutrition, Women and Children; Housing for All: Urban
Transformation and Law and Order and Justice Delivery System would be Core
Sectors as they constitute important elements of the National Development
Agenda. MGNREGA and Schemes for Social inclusion would be accorded highest
priority.
·
Accordingly,
existing CSS should be divided into: Core and Optional schemes.
·
Amongst
the Core Schemes, those for social protection and social inclusion should form
the Core of the Core and be the first charge on available funds for the
National Development Agenda.
·
Ordinarily,
in any sector there should be one Umbrella scheme having the same funding
pattern for all its sub-components.
·
Investment
levels in Core Schemes should be maintained so as to ensure that the optimum
size of the programme does not shrink.
·
Funds
for Optional Schemes would be allocated to States by the Ministry of Finance as
a lump sum and States would be free to choose which Optional Schemes they wish
to implement. Additionally, the States have been given the flexibility of
portability of funds from optional schemes ( should it choose not to utilize to
utilize its entire allocation under that head) to any other CSS component
within the overall allocation for the state under CASP.
·
From
now onwards, the sharing pattern should be:
For Core Schemes
a)
For
8 NE and 3 Himalayan States: Centre: State: 90:10
b)
For
other States: Centre: State: 60:40
c) For Union
Territories: Centre: 100%
For Optional Schemes
a) For 8 NE and 3 Himalayan States: Centre: State:
80:20
b) For other States: Centre: State: 50:50
c) For Union Territories: Centre: 100%
·
Existing
funding pattern for schemes classified as Core of the Core should continue.
·
Remuneration
for ASHAs, Aanganwadi and Contract Teachers to be protected. However, Central
Assistance (CA) may be capped at existing level for the next 2 years in this
regard.
(Provision for incomplete projects: all
works begun in projects in existence in 2014-15 in which work has been awarded
till 31 March 2015 should be funded on the existing pattern for the next 2
years.
·
Flexibility
in Schemes and Institutional mechanism: 25% allocation in a Scheme should be
flexi-fund, to be spent in accordance with Ministry of Finance guidelines.
·
Design
of CSS should be broadly like Rashtriya Krishi Vikas Yojana (RKVY) with a large
number of admissible components in a scheme, and the States being free to
choose components to suit their local needs.
·
Cost
norms in construction component of schemes should be decided by States subject
to capping of allocation by the Centre.
·
Releases
of funds should be simplified, based on yearly authorization. Actual release of
cash would be on quarterly basis. .
·
Releases
should be based on Utilization Certificates of the installment prior to the
last installment to a State/UT.
·
The
Ministry of Finance would make Scheme-wise allocations for Core Schemes. In
each Core Schemes, there would be transparent criteria for State allocation of
funds. There would also be transparent criteria for the lump sum allocation to
States for Optional Schemes. These criteria to be evolved by NITI Aayog in
consultation with State Governments and central Ministries.
·
NITI
Aayog to have concurrent jurisdiction in monitoring of Centrally Sponsored
Schemes in the States and Central Ministries.
·
Third-party
evaluation by NITI Aayog.
*****
AKT/SP