Flexi-Funds

Q.  Which of the following is/are true regarding Flexi-Funds?

1) Flexi-Funds cannot be used for mitigation or restoration activities in case of natural calamities
2) They can be used to pilot innovations to improve efficiency of the overall scheme.
- Published on 12 Sep 16

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 2
 
  • Government has issued fresh flexi-fund guidelines that will give more freedom to states in spending money under the Centrally Sponsored Schemes (CSS) to meet local developmental requirements.
  • Under the new norms, flexi-funds in each CSS have been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories.
  • Finance Ministry said, States can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.
  • The flexi-fund facility is not for CSS which emanate from legislation, like MNREGA.

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