The Central Government frequently complains on the poor performance of the State Governments in eradicating suffering of the vulnerable sections of the society. Restructuring of Centrally sponsored schemes across the sectors for ameliorating the cause of vulnerable sections of population aims at providing flexibility to the States in better implementation. Critically evaluate.

ing pattern is 50:50 among normal states

• 75:25 for scheduled states
• 90:10 for himalayan states
• Eg. PM Awas Yojana --
• under this 100% funding is done by central government. Eg. PM KISAN, etc

[Concerns raised by some States regarding Centrally Sponsored Scheme.]

1. [Untimely disbursal of funds]: States such as Kerala, Odisha have accused the centre of disparities in fund allocation.

2. [Tied funds]: centrally sponsored schemes have funds tied to the actions taken by the states, this undermines the financial freedom.

3. [Discrimination] among the states.

4. Leads to [North-South] divide in accessibility of funds.

[Remedial measures for these issues]

1. The differentiation between centrally sponsored and central sector must be based on proper consultation with the states.

1. Timely devolution of funds should be followed.

2. Identification of beneficiaries should be the sole objective of state governments.

3. Uniform treatments among the states.

4. [Developmental] schemes should be given priority over populistic schemes.