Union ministers Nitin Gadkari, Rajnath SIngh, PM Modi, Niti Aayog V-C Rajiv Kumar and Union minister Amit Shah at the Niti meet. (Photo: @narendramodi.in, Twitter)
Union ministers Nitin Gadkari, Rajnath SIngh, PM Modi, Niti Aayog V-C Rajiv Kumar and Union minister Amit Shah at the Niti meet. (Photo: @narendramodi.in, Twitter)

Central schemes bleeding states, CMs rue at Niti meeting 

Bihar CM Nitish Kumar made a forceful argument that the centrally sponsored schemes should be discontinued due to mounting financial woes of states. 

NEW DELHI:  Even while the BJP credited flagship schemes for its massive Lok Sabha mandate, NDA ally and Bihar Chief Minister Nitish Kumar made a forceful argument in the Niti Aayog governing council meeting that the centrally sponsored schemes (CSEs) should be discontinued due to mounting financial woes of states. 

Kerala CM Pinarayi Vijayan, while noting that states have to bear 40 per cent of the costs for implementing these schemes in place of earlier 25 per cent, rued that the Niti Aayog had failed to become a better substitute to the Planning Commission. 

“It is very difficult to make financial provision, to maintain accounts and to monitor schemes of CSEs due to the contribution of Centre and state. Not only that, the state government is bound to participate in CSEs even if such schemes aren’t a priority for the state. In this regard, we would like to suggest that the Centre should discontinue CSEs and make a provision for implementation of schemes of their priority under the Central Sector Schemes,” Kumar told the Governing Council.

Noting that the Centre changed the financial pattern for all 21 schemes of national development agenda, resulting which the proportion of contribution is 60:40 (Central: State), Kumar said that in some of CSEs, the contribution of the Centre has been reduced to 50 per cent. “Due to this change in the financial pattern, Bihar spent Rs 4,500 crore in 2015-16, Rs 4,900 crore in 2016-17, Rs 15,335 crore in 2017-18 and Rs 21,396 crore 2018-19 from its own resources in CSEs. Obviously, the State has to commit substantial resources, thereby providing less funds for schemes of state’s own priority,” Kumar stressed.

Echoing similar views, Vijayan said the states now have to bear a higher share of 40 per cent instead of the earlier average 25 per cent in implementing CSEs. “This has resulted in the shrinking of state governments’ fiscal space. NITI Aayog in the present form has not played the much-expected role of a facilitator in the last four years. There is a growing realisation that it is perhaps not a substitute for the erstwhile Planning Commission,” added Vijayan.

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