In the context of 7th Schedule of the Indian Constituion, there is a requirement for the rationalisation of spending of government schemes for optimal resource allocation. Analyse (200 Words)
Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
Chinna 5 years
Kindly review...thank you
IAS Parliament 5 years
Good attempt. No need to define about 7th schedule. Keep Writing.
IAS Parliament 5 years
KEY POINTS
· The difference between a Central Sector and a Centrally Sponsored Scheme is that for the former, all expenditure is borne by the Union government.
· For a CSS, part of the expenditure is borne by the Union government. States bear the rest. The state contribution is contingent on the type of state — north east and Himalayan states versus the others.
Need for Rationalisation of spending
· CSS basket has an expiry date of March 31, 2020 which is co-terminus with recommendations of the 14th Finance Commission. Therefore, from April 1, 2020, we will have a new CSS basket.
· Indeed, we need to plan for that CSS basket in advance, since the 2020-21 Union and state budgets will need to factor in the new CSS basket.
· Revamping a CS is the Union government’s prerogative, while revamping a CSS, without consultation with states, is not.
· The Chaturvedi report suggested that nine flagship schemes (MGNREGA, IAY, SSA, NRHM, and so on) should remain as CSSs, while another six schemes (JNNURM, RKVY and so on) should become CSs. Fifteen is a large enough number of schemes for public expenditure.
· The sub-group of chief ministers talked about implementation and divided schemes into core and optional ones. However, the core of the recommendation was the following: “The Sub-Group recommends that the existing CSS should be restructured and their number should be reduced to a maximum of 30 schemes. All these schemes would be ‘Umbrella Schemes’, with every scheme having a large number of components with a uniform funding pattern.”
· Hanumanthaiah Committee also referred to the difficulties of the states in finding resources to meet their share of expenditure on the schemes sponsored by the central government and suggested consultation with the states before directives in this regard were issued.
· So there is urgent need to rationalise spending on government schemes for optimal allocation of resources.
Anu 5 years
Kindly review. Thank you.
IAS Parliament 5 years
Good answer. Keep Writing.
nalini 5 years
KINDLY REVIEW...THANK YOU...
IAS Parliament 5 years
Good answer. Try to stick to word limit. No need to explain about 7th schedule. Keep Writing.
DHARU 5 years
Kindly review!! Thank you
IAS Parliament 5 years
Good answer. No need to explain about 7th schedule and cut short the introduction part. Keep Writing.
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