Centrally Sponsored Schemes

The welfare schemes of the Government of India are classified broadly into two categories – Central Sector Schemes and Centrally Sponsored Schemes.  The central sector schemes are fully funded by the central government while the centrally sponsored schemes have partial funding by the central government.

Key Points for UPSC Prelims

  • The welfare schemes that are implemented by the State Governments, but funded substantially by the Union Government are called Centrally Sponsored Schemes. It is joint funding between the Union and the state government.
  • These comprise programmes that have a national character for which the Union supports for the development of the programme at the state level.
  • There are different funding models for centrally sponsored schemes like 60:40; wherein the central government funds 60% of the amount and the state government bears the 40% amount. The other ratio is 80:20.
  • There are 29 Centrally Sponsored Schemes. Out of these 29, 6 schemes are termed as Core of the Core Scheme i.e. most crucial for the national welfare, and the other 23 are Core schemes.
  • MGNREGA, Umbrella Schemes for Development of Scheduled Castes, Scheduled Tribes, Minorities, and other vulnerable groups are the core of the core schemes under Centrally Sponsored Schemes.
  • Some of the core schemes under Centrally Sponsored Schemes are the Blue Revolution, Green Revolution, White Revolution, PMKSY, PMAY, Swachch Bharat Mission, National Health Mission, etc.

15th Finance Commission urges to look at 7th Schedule  

The Chairman of the 15th Finance Commission, N.K. Singh has asked to consider the 7th Schedule and Article 283 of the constitution that provides the flexibility to the states for implementing Centrally Sponsored Schemes. He also highlighted that there is a need to fill the vacuum created by the abolition of the Planning Commission.

Planning Commission

It was a commission under the government of India with a major role in formulating 5-year plans. It was formed in the year 1950 and was dissolved in August 2014. It has been replaced by the think tank of the country- NITI Aayog.