“We expect the CSS expenditure to be lower than the BE (budget estimates) by ₹28,000 crore to ₹30,000 crore in the current fiscal year,” a senior official told ET.

India is poised to save a significant sum, roughly ₹30,000 crore, from its centrally sponsored schemes (CSS) in the current fiscal year. This financial windfall stems from a combination of factors: delayed spending by states and robust monitoring to minimize misuse of funds.

The government intends to redirect these savings towards bolstering other expenditure areas. This strategic shift comes amidst political events driving slower progress in large-scale development projects.

Elections and Efficiency Drive Savings

Officials estimate that delayed spending on flagship schemes due to the Lok Sabha and various state elections throughout the year will account for approximately ₹17,000 crore of the projected savings. An additional ₹13,000 crore is expected to be saved by plugging loopholes and enhancing efficiency across various schemes.

The government had initially allocated ₹5.05 lakh crore for CSS in the 2024-25 budget, a 9.8% increase compared to the revised estimates for key flagship initiatives such as Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY) and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). This represents almost half of the total capital expenditure for the current fiscal year. Currently, spending on CSS accounts for 10.4% of the Centre’s overall expenditure budget.

More Lean and Effective Schemes?

While the Centre encourages states to accelerate spending, it anticipates that some allocations may remain unspent.

The government is already engaged in a multifaceted effort to streamline CSS, including revisiting the funding shared between the Centre and states.

Prime Minister Narendra Modi initiated a sub-group of chief ministers focused on CSS rationalization back in March 2015. Since then, the number of centrally sponsored schemes has been significantly reduced from 130 to 75.

Officials mention that some ministries are conducting internal evaluations, analyzing various parameters such as funds released, utilization rates, impact assessment, and future relevance. These insights will likely shape funding requests for the FY25 budget. The overall target is to diminish the number of CSS to 50.

Separately, the government think tank, Niti Aayog, is delving into further rationalization efforts across critical sectors like agriculture, health, skill development, urban development, water resources, and the environment.

– How⁣ can the government ensure transparency and communication regarding the reallocation of funds from ⁢CSS​ to address public concerns?

⁣## Centrally Sponsored Schemes:​ A Shift in ​Spending Priorities?

**Host:** Welcome back to the show. Today​ we’re discussing a recent development regarding India’s centrally sponsored schemes (CSS). Joining us is [Guest Name], an expert on public policy and finance. ​ [Guest Name], thanks for being here.

**Guest:**

It’s a ⁣pleasure to be here.

**Host:**

Let’s dive straight into‌ it. ​News reports indicate that India​ is on track to save‍ a significant amount, around ₹30,000 crore, from its CSS this fiscal year. Can you shed some light on what’s driving this? ⁤ [[1](https://economictimes.indiatimes.com/news/economy/finance/delayed-spending-by-states-may-help-govt-save-rs-30000-cr-this-fy/articleshow/115946162.cms)]

**Guest:**

That’s right. There are two main factors at play. Firstly, spending on ⁤these schemes ​by states has been delayed, ‌partly due‍ to the Lok​ Sabha ⁢and various state elections throughout⁤ the year. This accounts‍ for roughly‍ ₹17,000 crore of the ⁢projected savings. Secondly, the‌ government has implemented stricter monitoring measures​ to minimize misuse of funds, contributing another ₹13,000⁣ crore in potential savings.

**Host:**

So, this windfall isn’t necessarily due to cuts in scheme budgets, but rather a‍ change in the spending pace and improved efficiency?

**Guest:**

Precisely.‍ The‌ government ⁤had initially budgeted⁣ ₹5.05 lakh crore for CSS in the 2024-25 fiscal year, which was already‌ a 9.8% increase from the previous year. This​ suggests the savings aren’t driven by ⁢reducing the scope of‌ these crucial programs.

**Host:**

What ⁤does the government plan to‍ do with these extra funds?

**Guest:**

The​ government has indicated its intention to reallocate these savings ‍towards other expenditure⁤ priorities. ⁢This could include investing in infrastructure⁢ projects, supporting key social sectors⁢ or addressing immediate economic concerns.

**Host:**

Interesting. Some might argue that redirecting funds from CSS, even temporarily, could ⁣impact the⁢ progress of these schemes.‌ What are your thoughts on that?

**Guest:**

It’s a valid‍ concern. While these schemes​ are ⁣essential for development, efficient resource‌ allocation ‍is ⁣crucial. ‌The government needs to strike a balance between ensuring ⁣timely implementation of schemes‍ and⁤ addressing other pressing national needs. Transparency and⁣ clear communication regarding the reallocation of funds will be key to addressing any public apprehensions.

⁤ **Host:**

Thank you, [Guest Name], for sharing your​ insights. This‍ certainly is a ‌development to watch ⁣in the coming months.