FM likely to transfer 88 CSS to states

NEW DELHI: Centre is likely to cut expenditure by Rs 5,000 crore with the transfer of 88 Centrally Sponsored Schemes to states, probably in the Union Budget to be unveiled on Monday.

The announcement is expected as part of the commitment made in the National Common Minimum Programme to right size the government, as outlined by Geethakrishnan Committee Report on expenditure reforms.

With the pre-budget economic survey stressing on expenditure reforms as measure to contain fiscal deficit, Finance Minister P Chidambaram is widely expected to merge or transfer many of the 210 CSS to states.

It is expected that at least seven Central Schemes costing over Rs 1000 crore, that have outlived their utility, would be wound up. These are part of the 88 CSS that are to be merged, transferred to the states or wound up.

The move, it is learnt, has already caused tremors among the circles concerned as about 15,000-20,000 employees may be rendered jobless besides many senior officers of the joint secretary level being sent back to their parent cadres.

Reworking of the Central Schemes would add Rs 700 crore to the Centre''s kitty.

Of the 88 schemes, 34 would be transferred to states and the remaining 47 would either translate into Central Schemes or be merged with other schemes.

Last year''s Budget allocated Rs 35,000 crore for CSS and Rs 54,000 crore for Central Schemes and this year, it is expected that Rs 42,000 crore would be earmarked for CSS out of the Rs 1,10,000 crore to be allocated for Central ministries, the sources said.

Schemes relating to health and family welfare, rural development and those for statistical purpose and data collection would continue to be with the Centre.

The sources said that Chidambaram''s Budget speech would mention the major exercise for reducing non-plan expenditure without elaborating on the issue with the obvious intention of not igniting the Left parties which have been forcing the Congress-led coalition government to empty its coffers for employment generation.

Another major initiative which the Budget is expected to mention is the move to centralise bureaucratic control which the Government aims to do by converging schemes which have been overlapping.

Introduction of schemes like water management programme or clubbing of APDRP and rural electrification programmes, though aimed at sending funds directly to the districts for their proper implementation, would also result in making the district-level bureaucracy directly answerable to the Central bureaucracy and reducing the state''s control.