Centrally sponsored schemes
Also called: CSS, Central sector schemes · Topic: Fiscal Federalism: Finance Commission, Devolution and Centre-State Finances · NCERT: Beyond NCERT
Meaning
Centrally sponsored schemes (CSS) are run by states, with the Centre and the state sharing the cost. Central sector schemes are fully funded and run by the Centre. Under CSS, the Centre sets the design and conditions, and the state must put in a matching share, meaning its own portion of the money. Their constitutional basis is Art. 282, which lets the Union give grants for any public purpose. Critics say CSS reduce state autonomy and push aside states' own priorities.
Example
In 2015, the NITI Aayog Sub-Group of Chief Ministers grouped CSS into three kinds:
- Core of the core schemes, such as MGNREGA, which keep their existing funding patterns.
- Core schemes, funded 60:40 (Centre:state).
- Optional schemes, which states can choose to join.
North-eastern and Himalayan states pay on a 90:10 basis. Union Territories without a legislature get 100% central funding.
Don't confuse with
- Finance Commission transfers: these are formula-based and largely untied. CSS money is conditional and depends on the scheme.