The Centre could also alter the funding ratio of some of the schemes, making the states more accountable, they said.
“The next stage of rationalisation of CSS is being initiated… ministries have been asked to complete their internal review and assessment by the end of October and recommend a sunset clause wherever applicable,” a senior official told ET on condition of anonymity.
Currently, CSS account for about 10% of the Centre’s annual budget outlay, and rationalisation of the schemes may lead to more effective utilisation of government funds, according to the officials.
The Centre allocated ₹5.05 lakh crore for CSS in the budget for 2024-25.
Another official said the exercise will include revamping some schemes by merging them with similar or bigger ones, including schemes under water and sanitation, power and renewable energy and social sectors.”The assessment will be based on parameters like funds released, fund utilised, impact and future relevance,” the official said. The government may also relook at fund sharing between the Centre and the states.
“This will make schemes focused and attract greater participation from states,” the official said.
Prime Minister Narendra Modi, in March 2015, constituted a sub-group of chief ministers on rationalisation of CSS. The Centre has reduced the number of centrally sponsored schemes to 75 from 130 since then.
Separately, the NITI Aayog is assessing all centrally sponsored schemes. The development monitoring and evaluation office of the think tank has invited proposals to engage consultancy firms for the exercise.