New categories of Centrally Sponsored Schemes
Q. Which of the following is/are true about core and optional schemes?
1) As per the new system of classification, the Core of the Core schemes will have complete central funding.
2) The Optional schemes will have complete state funding with an option to decide whether to invest in these or not.- Published on 04 Apr 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Neither 1 nor 2
- As per the new system, the Core of the Core schemes will retain their expenditure allocation framework. For example, MGNREGA had 75 per cent of the material expenditure from the Centre and 25 per cent from the states.
- The Core schemes will have a 60:40 formula, while the Optional schemes will have a 50:50 formula, with the states having the flexibility to decide whether to invest in these or not.
- 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 Central Assistance to State Plan (CASP).
