The number of centrally sponsored schemes is likely to be reduced from 72 to 30, following a broad consensus reached at a chief ministers' sub-group of NITI Aayog.
The sub-group, headed by Madhya Pradesh chief minister Shivraj Singh Chouhan, has also recommended an increase in the share of flexi funds to 25 per cent from the current 10 per cent.
"There is a broad consensus on reducing number of centrally sponsored schemes and having two types of schemes," Chouhan said after the meeting of the sub-group at NITI Aayog.
The recommendations will be finalised by 5 July and consent of all members would be sought before submitting the final report to Prime Minister Narendra Modi.
"Some more suggestions have come. I have formed a committee of NITI Aayog officials headed by its CEO. It will deliberate...Prepare a final draft by 5 July. After seeking all chief ministers' consent on the draft, the final recommendations will be submitted to the prime minister," said Chouhan.
Rajasthan chief minister Vasundhara Raje, Uttar Pradesh chief minister Akhilesh Yadav, Jharkhand chief minister Raghubar Das, besides the chief ministers of Madhya Pradesh, Kerala and Nagaland attended the meeting.
Prime Minister Narendra Modi had constituted the sub-group on rationalisation of centrally-sponsored schemes in the first meeting of the governing council convened on 8 February.
The sub-group consists of 11 members, including the chief ministers of 10 states.
The panel has met for four times at an interval of almost one month. The last meeting was held on May 28 in Bhopal.
Based on earlier meetings, a draft report was presented today to the members for comments, which was prepared by a committee headed by National Institution for Transforming India (NITI) Aayog's CEO Sindhushree Khullar.
The draft report suggested centrally sponsored schemes to be divided into two broad groups. The core schemes that have national development agenda include statutory schemes such as MNREGA, Swachh Bharat Mission and Mid Day Meal. The final list will decided later.
The second category is optional schemes for social protection and social inclusion. Based on the division of schemes into two parts, the number of centrally sponsored schemes would be 30, the draft stated.
The centre's share in the schemes would not be less than 50 per cent.
In each of the identified core schemes, ordinarily, the centre will implement umbrella programme having a large number of components with a uniform funding pattern to suit states' requirement.
For general category states, under core schemes, the centre and state would share funding in the ration 60:40 per cent. However in schemes where the centre's share is below 60 per cent, it will remain the same.
Under the optional schemes for general category states, the funding would be shared equally. But in schemes where centre's share is below 50 per cent, it will remain the same.
For 11 special category states under core sector scheme, the centre and the state share expenditure in the ratio of 90:10 while for optional schemes it would 80:20.
The draft report also said that for all projects under CSS in which 30 per cent of the work has been completed, funding should be continued.
The sharing pattern under which the project was approved should also continue till March 2017. If the projects remain incomplete even thereafter, state would have to complete the project using their own funds.
The draft report also says that the schemes in sector including poverty elimination, drinking water, Swachh Bharat, rural electrification, women and child health nutrition, Housing for All and urban transformation should be give priority for realising 'Vision 2022'.
As per the draft, the rationalisation of schemes and restructure funding patter of CSS should be implemented from 2016-17.