Central schemes unlikely to be revamped before 2024 polls

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general elections, two people with direct knowledge of the matter said. However, the Centre could take a relook at some of these schemes, especially the ones started during the pandemic, for further rationalization in the next budget, these people added.

“There is unlikely to be further rationalization of Centrally sponsored schemes during the 2024-25 interim budget," said one of these people, who spoke on condition of anonymity. “Rationalisation of these schemes in the earlier budget was carried out as the Centre wanted maximum efficiency to utilise the limited budgetary resources available (with the Union and state governments) for such schemes," the person added.

Centrally sponsored schemes are largely funded by the central government with a defined state government share. Though there were over 200 of these schemes a decade ago, the government phased out some over the years and their numbers fell to below 40 before the pandemic, only to rise to 58 now.

The Union Budget 2022-2023 had reduced these schemes significantly. The Centre’s release of funds under Centrally sponsored schemes is often dependent upon states meeting certain conditions.

The ‘core of the core schemes’ under the Centrally sponsored schemes are six schemes like Mahatma Gandhi National Rural Employment Guarantee Program (MGNREA), National Social Assistance Program, Umbrella Programme for Development of Minorities, Umbrella Programme for Development of Other Vulnerable Groups, Umbrella Programme for Development of Scheduled Tribes and Umbrella Scheme for Development of Scheduled Castes. A total of ₹86,144.83 crore has been allocated to these schemes during the Annual Budget 2023-24, down from ₹99,214.70 crore allocated during the previous budget,