Three new provisions regarding this in Budget 2016-17

  1. Rationalization of Centrally Sponsored Schemes
    1. NITI Aayog has recommended that focus of the CSS should be on the schemes that comprise the National Development Agenda
    2. It further recommended that the schemes be divided into “Core” and “Optional” schemes and amongst the Core Schemes those for social protection and inclusion should be called “Core of the Core”.
    3. The subgroup further recommended that the investment levels in the Core Schemes should be maintained so as to ensure that the optimum size of the programme does not shrink.
    4. New Framework for Grants in Budget 2016-17 :
      1. The existing funding pattern of schemes defined as ‘core of the core’ have been retained.
      2. The funding pattern of ‘core’ schemes, which also form part of the National Development agenda, will be shared 60:40 between the Centre and the States (90:10 for the 8 North Eastern States and 3 Himalayan states).
        • Core of the Core: MNREGA, NSAP, SC and ST schemes, OBC schemes and minority schemes also
        • Core: 18 schemes: RKVY, Green Revolution, Krishi Unnati Yojana, Swacch Bharat, White Revolution schemes, MPLADS, National Health Mission
  • The other optional schemes will be optional for the State Governments and their fund sharing pattern will be 50:50 between the Centre and the States (80:20 for the 8 North Eastern States and 3 Himalyan States).
    • Examples of such schemes are Border Area Development Programme, National River Conservation Plan, Shyama Prasad Mukherjee RURBAN Mission etc. In Union Budget 2016–17 the total number of CSS has been brought down to 28.
  1. Outcome based monitoring of various programs to be implemented
  2. Doing away with the plan and non-plan expenditure distinction in the budget after the completion of the Twelfth Five Year Plan