Gist of Editorials: Spending Issues | GS – II


Relevance :  GS Paper  II


Introduction

The present CSS (centrally sponsored schemes) basket has an expiry date of March 31, 2020. From April 1, 2020, we will have a new CSS basket.

Difference between CS and CSS

For  CS ( central sector), all expenditure is borne by the Union government while for CSS (centrally sponsored schemes), part of the expenditure is borne by the Union government while States bear the rest. 

Revamping of CSS

  • 15th Finance Commission mentions a re-examination of CSSs.
  • B K Chaturvedi report has recommended restructuring of CSSs.
  • NITI Aayog has recommended rationalisation of CSSs.

Issues with CSSs

  • The number of CSSs is around 200.
  • States find difficulties to meet CSS expenditure.

Way forward  

  • There should only a total of 15-20 of CSs and CSSs combined.
  • There should not be CSSs for items in the State List (such as health).
  • CSS restructuring requires a relook at the Seventh Schedule.
  • Proper consultation with states for CSS restructuring is necessary.

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