140 centrally sponsored schemes to be merged into 66

The union government today decided to merge several of the 140 centrally sponsored schemes to 66 from during the 12th Five Year Plan (2012-17), in a bid to improve monitoring by district officials and provide greater flexibility for implementing them to states.

These schemes include 17 flagship programmes with significant outlays for major interventions required in health, education irrigation, urban development, infrastructure sectors.

Planning Commission deputy chairman Montek Singh Ahluwalia told reporters after a cabinet meeting in New Delhi today, "There are many different schemes in one area (like horticulture). We have condensed them (in) to one scheme."

He said district collectors now would have to deal with fewer schemes.

The government has also decided to alter the scheme guidelines to suit requirements of the states and give them greater flexibility to spend up to 10 percent of the allocated funds.

 "We have also addressed the issue of flexibility (through this decision)," Ahluwalia said, adding that states would have the flexibility to incur expenditure up to 10 per cent of the allocation under any scheme as long as the project was within the broad guideline of a scheme.

He said innovative implementation was essential while using the funds under centrally sponsored schemes to serve the broad purpose of the programme.

"To suit the requirements of the states, the Cabinet has also approved that a scheme may have state specific guidelines which may be recommended by an Inter-Ministerial Committee constituted for this purpose," a statement said.

It added "Besides, the financial assistance to the states in these schemes would be provided through the Consolidated Funds of the states. Further, to bring in desired flexibility, the Cabinet has approved that 10 per cent of the outlay of the schemes be kept as flexi-funds."