Present Status of Centre and State funding policy

Presently, as per the rationalized Centrally Sponsored Schemes (CSS) approved by the Government of India, the Centre and State funding pattern to different States of our country will be as given below.

For the Core of the Core Schemes which are legislatively backed or are designed to subserve the vulnerable sections of our population, the existing funding pattern will continue.

For Core Schemes, the funding pattern for the 8 Northern Eastern States and Himalayan States of Uttarakhand, Himachal Pradesh and Jammu & Kashmir shall be Centre: 90% and State: 10%, whereas for the rest of the States this ratio shall be Centre: 60% and State: 40%.

For Optional Schemes, the funding pattern for the 8 Northern Eastern States and Himalayan States of Uttarakhand, Himachal Pradesh and Jammu & Kashmir shall be Centre: 80% and State: 20%, whereas for the rest of the States this ratio shall be Centre: 50% and State: 50%.

However, all the sharing patterns indicated above shall be subject to the proviso that if the Central share is already below that indicated in the sharing pattern, then the Centre’s share would remain capped at their present level.

All Core and Optional Schemes would be funded 100% by Centre in all Union Territories (without legislature). For Union Territories (with legislature), existing funding pattern would be followed for all Core of the Core and Core Schemes. For Optional Schemes, the funding pattern of 80% by Centre and 20% by Union Territories (with legislature) would be followed.

All schemes of the Government of India are funded as per the above ratios and there is no “special scheme” under implementation.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Rajya Sabha today.