Analytical Study on the Criteria and Processes for Devolution of Plan Funds through Centrally Sponsored Schemes and Central Assistance

This study examines 16 flagship schemes under the Centrally Sponsored Schemes (CSS) and Additional Central Assistance (ACA) programmes, focusing on the release and expenditure under these schemes and analysis of inter-state distribution. The study reviewed the guidelines of each of these schemes in detail to arrive at any meaningful interpretation of the analysis of release/expenditure of funds. It concluded that the transfer of funds from the Centre to the state under different schemes is backed by variety of considerations such as equity performance, institutional reforms, absorption capacity and political economy. Some of these schemes are more dependent on objective criteria and some others are more dependent on the state/district/block/GP plans. However, as the analysis of the data revealed, many of these schemes are not achieving desirable results.