News Headlines, English News, Today Headlines, Top Stories | Arth Parkash

A parliamentary standing committee in its report in March held that ‘the centre has Central Sector Scheme and Centrally Sponsored Scheme that form the backbone of education in India.

By January 31, 2022, Rs. 23, 572 crores were spent against a total amount of Rs. 40, 576.50 crores in Revised Estimates under CSS  (Centrally Sponsored Schemes), Rs. 1.46 crore was spent as against an allocation of Rs. 286.20 crore under CseS ( Central Sector Schemes) during the same duration.

The Department related Parliamentary Standing Committee on Education, Women, Children, Youth and Sports, chaired by BJP MP. Vinay P Shahasrabuddhe, has directed the Center to identify the factors behind the underutilization of funds.

What are CSeS (Centrally Sector Schemes)?

The Government schemes which are designed, planned and completely funded by the Central government are known as central schemes. Based on the subjects from the union list, the schemes are formulated by the centre.

What are CSS (Centrally Sponsored Schemes)?

Centrally Sponsored Schemes are on the other hand schemes that are funded partially by both the central and state government.

What are some of the reasons behind the non-utilization of funds?

Delay in Flow of Funds: Delay in fund flow is one of the major factors causing underutilization. Quite often, implementing agencies at the district level receive the first instalment by the end of the first quarter and sometimes, even during the second quarter of the financial year. As a result, they are unable to spend on the activities planned during the first quarter.

Lack of Decentralised Planning: The creation of local governments with the necessary powers to prepare need-based plans and budgets important for the effective implementation of development schemes. All scheme guidelines have elucidated how need-based planning is necessary to achieve the targeted outcomes. However, the guidelines are not followed as the local bodies have never been conferred with the job of preparing budget backed plans at their level.

Staff Shortages: Shortages of human resources across departments at every tier of the government has a huge implication on fund utilisation.  It has almost been a decade since states started curtailing their revenue expenditures by reducing the number of new hires, thus, leaving a large number of positions vacant in almost every department in order to be fiscally prudent. Most of the departments hire short-term staff on a contractual basis.