After the 14th Finance Commission’s recommendations on increasing States’ share on Central Taxes from 32 percent to 42 percent, Government of India is planning to delink 8 schemes from Central funding, while 24 schemes to run with changed sharing pattern and 31 schemes will get full support from the Centre.
During his budget speech in the Parliament, Finance Minister Arun Jaitley said that consequent to this substantially higher devolution, many schemes on the State subjects are to be delinked from Central support. However, keeping in mind that some of these schemes represent national priorities, especially those targeted at poverty alleviation, Centre has decided that it will continue to contribute to such schemes, the Minister added. Besides, the schemes mandated by legal obligations and those backed by Cess collection have been fully provided for.
As per the Budget 2015-16, Centre has decided to support 31 schemes fully which are targeted to the benefits of socially disadvantaged groups. In case of some centrally sponsored schemes, the Centre: State funding pattern will undergo a change with States to contribute higher share.
So far, Central programmes such as Pradhan Mantri Gram Sadak Yojana (PMGSY), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Sarva Siksha Abhiya (SSA), Rashtriya Krishi Vikas Yojana, Indira Awaas Yojana (IAY), Swachh Bharat Abhiyan, National Health Mission, National Rural Livelihood Mission (NRLM), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), among many social sector programmes have been 75 percent funded by the Centre while 25 percent by the State governments. Whereas, in special category and hilly states, the Centre and states funding ratio was 90:10.