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Polity & Governance GS 2 In the news 7 times

Centrally Sponsored Schemes (CSS)

Design and Fund Flow Architecture

Centrally Sponsored Schemes operate on a shared funding pattern between the Centre and States, typically in ratios such as 60:40 or 75:25 (90:10 for special category states). The fund flow involves the Centre releasing its share to State treasuries or implementing agencies, and States providing their matching contribution. Utilisation certificates (UCs) must be submitted by states before subsequent instalments are released.

Key details
  • CSS restructured in 2015-16 following the 14th Finance Commission's increase in tax devolution to states (from 32% to 42%)
  • Number of CSS rationalised from 66 to 28 core and umbrella schemes
  • Fund release mechanism: first instalment based on proposal approval; subsequent instalments contingent on UCs and expenditure reports
  • State matching share non-compliance is a key bottleneck — states with fiscal stress often cannot provide their share
  • Implementation bottlenecks: land acquisition delays, environmental clearances, contractor capacity, geographical challenges, and price fluctuations
In the news

Tracked since February 12, 2026 · last seen June 22, 2026 · updates as the daily brief publishes

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