Abstract

This report investigates 16 prominent centrally sponsored schemes and additional central assistance programs. The researchers utilise a multifaceted methodological approach, which involved collecting and analyzing data on the disbursement and utilization of funds across the various schemes, as well as examining the interstate allocation of these funds. Additionally, the researchers conducted an analytical desk review of the sixteen flagship schemes to understand the criteria used for the selection of states and the devolution of funds from the central government to the state/district level.

This review focuses on identifying the key factors that guide the release and expenditure of funds. Results from the study find that the allocation of funds from the central government to the states under various schemes is influenced by a range of factors, including, but not limited to, equity performance, institutional reforms, absorption capacity, and political considerations. While some of these schemes rely more on objective criteria, others are more dependent on the plans developed at the state, district, block, and Gram Panchayat levels. The analysis of the data revealed that many of these schemes have not been achieving their intended outcomes.

Jha, J., Alamuru, S., & Sharma, V. (2013). Analytical study on the criteria and processes for devolution of plan funds through centrally sponsored schemes and central assistance. Bengaluru, India: Centre for Budget and Policy Studies and Karnataka Evaluation Authority; Planning, Programme Monitoring and Statistics, Govt. of Karnataka.