{"id":44422,"date":"2025-05-30T19:29:02","date_gmt":"2025-05-30T13:59:02","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=44422"},"modified":"2025-05-30T19:29:15","modified_gmt":"2025-05-30T13:59:15","slug":"css-cs-appraisal-16th-finance-commission","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/30-05-2025\/css-cs-appraisal-16th-finance-commission","title":{"rendered":"Appraisal of CSSs and CSs Ahead of the 16th Finance Commission Cycle"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>In News<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Department of Expenditure, Ministry of Finance has initiated a comprehensive exercise to appraise and approve Centrally Sponsored Schemes (CSSs) and Central Sector Schemes (CSs) for continuation post March 2026.\n<ul class=\"wp-block-list\">\n<li>This aligns with the 16th Finance Commission cycle starting 1st April 2026.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The foundation of this appraisal exercise lies in the <strong>2016 Union Budget,<\/strong> which formally introduced the policy of assigning a<strong> sunset clause and outcome-based evaluation<\/strong> for every centrally funded scheme.\u00a0<\/li>\n\n\n\n<li>The goal was to ensure that n<strong>o scheme continues indefinitely without proven effectiveness and relevance.<\/strong><\/li>\n\n\n\n<li>For <strong>Centrally Sponsored Schemes (CSSs),<\/strong> the Development Monitoring and Evaluation Organisation (DMEO) under NITI Aayog is responsible for conducting evaluations.<\/li>\n\n\n\n<li>For <strong>Central Sector Schemes (CSs)<\/strong>, the concerned ministries select third-party agencies to assess outcomes and performance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Significance of the Reappraisal Exercise<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Outcome-Driven Governance:<\/strong> Aligning schemes with measurable outcomes through third-party evaluations ensures evidence-based policymaking.\n<ul class=\"wp-block-list\">\n<li>It eliminates continuation of underperforming or redundant schemes.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Fiscal Consolidation and Optimal Resource Use: <\/strong>Helps contain revenue expenditure and create fiscal space for capital-intensive projects.\n<ul class=\"wp-block-list\">\n<li><strong>Example:<\/strong> Capital expenditure for FY 2025\u201326 (BE) stands at \u20b911.21 lakh crore, enabled by similar rationalisation in the past.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Scheme Convergence and Efficiency:<\/strong> Integration of overlapping schemes reduces duplication, administrative costs, and enhances synergies (e.g., health + nutrition + WASH).<\/li>\n\n\n\n<li><strong>Digital Targeting and DBT Integration: <\/strong>Linking schemes with universal Aadhaar-based DBT enhances transparency, reduces leakages, and ensures last-mile delivery.<\/li>\n\n\n\n<li><strong>India @100 Vision Alignment:<\/strong> Facilitates policy alignment with long-term developmental goals such as infrastructure, health, education, and innovation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges in Recalibrating Schemes<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Political and Federal Sensitivities: <\/strong>States may resist merger or closure of schemes due to regional priorities or electoral concerns.\n<ul class=\"wp-block-list\">\n<li>CSSs often involve shared finances\u2014creating friction over cost-sharing ratios.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Institutional Inertia and Bureaucratic Resistance:<\/strong> Ministries may be reluctant to let go of legacy schemes due to vested interests or fear of budget cuts.<\/li>\n\n\n\n<li><strong>Evaluation Limitations:<\/strong> Quality and neutrality of third-party evaluations vary; some schemes lack robust data for review.<\/li>\n\n\n\n<li><strong>Implementation Gaps:<\/strong> Even well-designed schemes fail due to weak implementation capacity, especially at district and local levels.<\/li>\n\n\n\n<li><strong>Transition Risks: <\/strong>Phasing out schemes without adequate transition planning may disrupt service delivery.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Strengthen Evaluation Frameworks:<\/strong> DMEO-NITI Aayog and Ministry-appointed agencies must adopt uniform standards, real-time MIS integration, and participatory evaluation.<\/li>\n\n\n\n<li><strong>Foster Centre-State Coordination: <\/strong>Transparent dialogue and incentive-based funding to secure state buy-in for scheme redesign.<\/li>\n\n\n\n<li><strong>Digital Infrastructure for Scheme Monitoring: <\/strong>Expand platforms like PFMS and JanSamarth to track disbursements, outputs, and impact.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><thead><tr><th><strong>Aspect<\/strong><\/th><th><strong>Centrally Sponsored Schemes (CSSs)<\/strong><\/th><th><strong>Central Sector Schemes (CSs)<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Funding Pattern<\/strong><\/td><td>Shared between Centre and State Governments. [60:40 (General States), 90:10 (NE and Himalayan States)]<\/td><td>Fully funded by the Central Government (100%)<\/td><\/tr><tr><td><strong>Implementation<\/strong><\/td><td>Implemented by State Governments<\/td><td>Implemented directly by Central Ministries\/Departments<\/td><\/tr><tr><td><strong>Constitutional Jurisdiction<\/strong><\/td><td>Focuses on State List and Concurrent List subjects<\/td><td>Focuses on Union List subjects<\/td><\/tr><tr><td><strong>Control<\/strong><\/td><td>Joint control \u2013 Centre provides guidelines; States execute<\/td><td>Central control \u2013 planned, executed, and monitored by Centre<\/td><\/tr><tr><td><strong>Objective<\/strong><\/td><td>To ensure national development with state involvement<\/td><td>To implement strategic or priority initiatives of national interest<\/td><\/tr><tr><td><strong>Examples<\/strong><\/td><td>MGNREGA, ICDS, PMAY-G, NHM, Samagra Shiksha<\/td><td>BharatNet, PM-KUSUM, INSPIRE, DRDO R&amp;D schemes<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>In News<\/strong><\/h3>\n<li class=\"ms-5\">The Department of Expenditure, Ministry of Finance has initiated a comprehensive exercise to appraise and approve Centrally Sponsored Schemes (CSSs) and Central Sector Schemes (CSs) for continuation post March 2026.<\/li>\n<p><\/p>\n<h3><strong>About<\/strong><\/h3>\n<li class=\"ms-5\">The foundation of this appraisal exercise lies in the 2016 Union Budget, which formally introduced the policy of assigning a sunset clause and outcome-based evaluation for every centrally funded scheme.\u00a0<\/li>\n<li class=\"ms-5\">The goal was to ensure that no scheme continues indefinitely without proven effectiveness and relevance.<\/li>\n<li class=\"ms-5\">For Centrally Sponsored Schemes (CSSs), the Development Monitoring and Evaluation Organisation (DMEO) under NITI Aayog is responsible for conducting evaluations.<\/li>\n<li class=\"ms-5\">For Central Sector Schemes (CSs), the concerned ministries select third-party agencies to assess outcomes and performance.<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/30-05-2025\/css-cs-appraisal-16th-finance-commission\" class=\"btn btn-primary btn-sm float-end\">Read\u00a0More<\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-44422","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=44422"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44422\/revisions"}],"predecessor-version":[{"id":44457,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/44422\/revisions\/44457"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=44422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=44422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=44422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}