Centre likely to accept recommendation, ‘special’ states status to continue

The Centre is likely to go back on its earlier decision of ending ‘special category states’ by restoring higher f unding for north- easter n and Himalayan states for the National Development Agenda from the next financial year.

The government is expected to accept the recommendation made by the sub-group of chief ministers, headed by Madhya Pradesh chief minister Shivraj Singh Chouhan, on rationalisation of the Centrally Sponsored Schemes (CSS).

“Henceforth only schemes in the CSS in key identified areas will comprise the National

THE GOVERNMENT HAD EARLIER PROPOSED ENDING SPECIAL CATEGORY FOR STATES TO GET HIGHER FUNDING

Development Agenda,” the subgroup said in its recommendation. “Investment in these schemes should be maintained at least at their current level.”

The government had earlier proposed ending special category for states to get higher funding and reduce money flow to the CSS, saying direct funding to states has increased in wake of implementation of the 14th Finance Commission recommendations that increased Central flow from 32% to 42% in 2015-16.

But this did not click with the states that wanted the Centre to continue with higher funding for national projects like the Swachch Bhar at campaign, Poverty Elimination, Rural Connectivity (including electrification) and Digital India.

To ensure the development agenda is implemented, the sub- group recommended the existing CSS should be divided into core and optional schemes.

The core schemes will cover national priorities with assured Central funding and for optional schemes the finance ministry will provide lump sum money to states, with the latter free to choose which optional scheme they want to implement.