Which of the following is true with respect to the lsquo Central Sector Schemes rsquo and lsquo Cent...........

Indian Polity Indian Parliament

Which of the following is true with respect to the ‘Central Sector Schemes’ and ‘Centrally Sponsored Schemes’?

1. Central sector schemes are schemes with 100% funding by the Central government and implemented by the Central Government machinery.

2. Centrally Sponsored Schemes are the schemes by the centre where there is financial participation by both the centre and states.

3. The Central Sector Schemes have been restructured into - core of the core, core and optional.

Select the correct answer using codes given below

1 and 2 only

2 and 3 only

1 and 3 only

All of the above

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Explanation:

Third statement is incorrect. Centrally Sponsored Schemes are grouped under three headings-
1. Core of the core
2. Core and
3. Optional
Restructuring came into effect from 2016-17 budget onwards. Though each scheme envisages financial participation from the states as well, the state share differs for different schemes

• Under Centrally Sponsored Scheme (CSS) a certain percentage of the funding is borne by the States in the ratio of 50:50, 70:30, 75:25 or 90:10 and the implementation is by the State Governments. Centrally Sponsored Schemes are formulated in subjects from the State List to encourage States to prioritise in areas that require more attention.
• The central sector schemes are mainly formulated on subjects mainly from the Union List. Besides, there are some other programmes that various Central Ministries implements directly in States and UTs which also comes under Central Sector Schemes. In these schemes, the financial resources are not shifted to states.