Central Sector Schemes and Centrally Sponsored Schemes

The 7th Schedule of the Constitution provides three types of lists - (1) Union List (2) State List and (3) Concurrent List. In the Union list, such topics have been included, on which the power of law making is only with the Center and in the State list, the subjects on which the power of law making is with the state, while on the subjects included in the concurrent list. Both the state and the center have the right to make laws.

Since any nation needs some plans and policies for achieving its goals and objectives and for the development of its citizens, keeping this fact in mind, the policy makers in the federal system of India have development plans of India between the Union and the nation. To implement this, it has been divided into two parts - Central Sector Schemes and Centrally Sponsored Schemes.

Central Sector Schemes

These are programmes that are fully administered and implemented by the federal government. The schemes are developed by the Centre and are based on the Union List of subjects. There are also several other programmes that are implemented directly in States and UTs by different Central Ministries and are covered by Central Sector Schemes. The funds are not transmitted to states.

Examples of Central Sector Scheme:

Bharatnet, Namami Gange-National Ganga Plan, LPG connection to poor households, Crop Insurance Scheme, recapitalisation of public sector banks, family welfare schemes, labour welfare schemes, National Means cum Merit Scholarship Scheme, National Scheme for Incentive to Girl Child for Secondary Education, interest subsidy for short term credit to farmers, MRTS and metro projects, Pradhan Mantri Mudra Yojana and other credit guarantee funds, etc are some examples of Central Sector Schemes.

Central Sponsored Schemes

Centrally Sponsored Projects, on the other hand, are programmes run by state governments. However, the burden of these systems is shared in a 50:50, 70:30, 75:25, or 90:10 proportion. The Centre still bears the greater portion of the cost ratio. CSS is a mechanism in which the federal government financially aids state governments in implementing schemes.

Kinds of Central Sponsored Schemes and Ministries/Departments

Core of the Core Schemes:

National Social Assistance Programme (Department of Rural Development)
Mahatma Gandhi National Rural Employment Guarantee Programme (Department of Rural Development)
Umbrella Scheme for Development of Scheduled Castes (Department of Social Justice and Empowerment)
Umbrella Programme for Development of Scheduled Tribes (Ministry of Tribal Affairs)
Umbrella Programme for Development of Minorities
Umbrella Programme for Development of Other Vulnerable Groups

BK Chaturvedi Report

In April 2011, Planning Commission B.K. A committee was constituted under the chairmanship of Chaturvedi to identify the necessary measures for restructuring the CSS. The report of this committee presented in September 2011 suggested that:

9 flagship schemes (eg- MGNREGA, Pradhan Mantri Awas Yojana, Sarva Shiksha Abhiyan and National Health Mission etc.) should be maintained as CSS, while the other six schemes (Jawaharlal Nehru National Urban Renewal Mission and RKVY etc.) should be maintained as central sector schemes. Should be given shape
The maximum number of schemes for public expenditure should be 15.

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