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Govt Schemes Undergoing Major Overhaul
4 Jan
Summary
- Over 300 Central Sector and Sponsored Schemes face rationalization.
- Similar schemes will be merged, and redundant ones discontinued.
- Restructuring proposals due from ministries by March.
The Department of Expenditure has launched a significant drive to rationalize Central Sector (CS) and Centrally Sponsored Schemes (CSS). This initiative aims to reduce the number and financial outlay of these programs, with many facing renewal by fiscal year-end and a new cycle starting April 1, 2026. Ministries have been directed to submit restructuring proposals by March.
The government plans to merge similar schemes and eliminate those that are redundant or ineffective. Currently, there are 54 CSSs and 260 CSs whose approval expires by March 31, 2026. This consolidation seeks to improve the quality and impact of public spending, aligning objectives with India's long-term vision.
The Finance Ministry is emphasizing modernizing scheme architecture and improving last-mile delivery to ensure efficient fund utilization. Evaluations of scheme performance are conducted by NITI Aayog for CSS and third-party agencies for CSs, informing decisions on their continuation or subsumption into other programs.
