1) 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.
a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
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Answer
Explanation
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ANSWER: Neither 1 nor 2
Explanation:
- 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).
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2) Which of the following are the new categories of Centrally Sponsored Schemes?
1) Decentralized
2) Optional
3) Core
a. 1, 3
b. 2, 3
c. 1, 2
d. All of the above
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Answer
Explanation
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ANSWER: 2, 3
Explanation:
- This year government has introduced a new classification system for the Centre’s spending.
- The new system divides Centrally Sponsored Schemes (CSS) into three categories: Core of the Core, Core, and Optional Schemes. This system is based on the recommendations of a sub-committee of chief ministers formed by Niti Aayog for the rationalisation of the CSS.
- Only Schemes/Programmes in CSS in key identified sectors will comprise the National Development Agenda.
- 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.
- Under the new classification, eight schemes will be classified as Core of the Core. including MGNREGA and all the umbrella schemes for the upliftment of minorities, Scheduled Castes, and Scheduled Tribes.
- The Core schemes, 33 in number, include schemes as far-ranging as the Krishi Unnati Yojana, the Smart Cities programme, and the modernisation of the police force.
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