223 central schemes to be scrapped

The government has prepared a formula to scrap Central schemes of worth Rs 10,000 crores from the next financial year, reports Chetan Chauhan.

india Updated: Dec 06, 2006 19:20 IST

In a bid to provide financial boost to flagship programmes of UPA government in the next five years, the government has prepared a formula to scrap Central schemes of worth Rs 10,000 crores from the next financial year.

The plan, expected to be discussed, in the National Development Council meeting on Saturday can leave some government ministries and department devoid of their work. Ministries like Information and Broadcasting, Department of Animal Husbandry and Dairying, Department of Secondary and Higher Education, ministry of Water Resources, ministry of Environment and Forests and Department of Family Welfare are some of the key bodies that may lose huge money, if the plan is accepted.

According to government sources, 223 schemes—103 under Central Sponsored Schemes (CSS) and 120 under Central Sector Programmes (CSP)—have been listed for scrapping. While the former costs Rs 7,023 crore, the latter requires Rs 2,276 crore from the government. “It is necessary to expand government resources for the flagship schemes of the government and to meet commitments made under the National Common Minimum Programme (NCMP). And, it is only possible by the way of scrapping the schemes which have become redundant,” a government official explained.

Of the total 155 CSS, only 52 schemes, having annual outlay of more than Rs 300 crore and including flagship schemes, will remain with the Central Government. "We have worked on the basic premise that each district in the country should get Rs 50 lakh under a central scheme for its effectiveness," an official said.

Of the remaining 103, 25 schemes, with an annual outlay of between Rs 200-300 crore, would be allocated to the states for administering and rest would be closed, a government official said.

The plan prepared in consultation with the PMO has also listed 120 schemes under CSP for closure. "Most of these schemes will lose utility after end of 10th plan," an official said. Another 114 schemes, costing government Rs 6,981 crore, would be shifted to non-plan expenditure under the head—committed maintenance expenditure. "This is being done to check fiscal deficit,” he said. Remaining 83 schemes, costing Rs 59,000 crores, will continue, he added.

First Published: Dec 06, 2006 19:20 IST