Classification of Government Schemes in India

Classification of Government Schemes in India

The different ministries in India come up with different schemes to highlight & focus on particular area, which is significantly lacking than its counter-parts. Accordingly, depending on ministries these schemes can be central, or any state specific or a joint collaboration of both center & state. This page will try to answer all your questions regarding how government schemes are classified, funded and executed. We shall start by classification of government schemes and small background of the classification.

Planning Commission Era: Classification of Government Schemes

Since Independence, Development had always been our priority and Planning Commission was established as an expert body that could focus on development and the strategy. Steadily Planning Commission began to occupy increasing role in development budget and “Schemes” as way of working was identified. In the following decades multiple schemes some focusing on country, some on state level, some even lesser than state were launched under aegis of Planning Commission. All of such schemes have been basically of three-types depending upon funding & implementing agencies. These are:

  • Central Schemes or Central Sector Schemes
  • Central Sponsored Schemes
  • State Schemes

Central Schemes or Central Sector Schemes

  • These are schemes that are funded (100%) by Central Government
  • These schemes are implemented also by Central Government.
  • They consist of mostly schemes that in main (common) agenda of central government.

Central Sponsored Schemes

  • These Schemes can be funded jointly by both Central & State Government in some ratio (90:10, 75:25, 50:50 etc).
  • But, the State Government implemented these schemes.

State Schemes:

  • These are Schemes that are funded (100%) by State Government
  • State Government implemented these Schemes.

The Seeds of Change:

  • However, Under Planning Commission the number of Central Sector Schemes got increased at a rapid pace. While, in 2007 their number was 99, it rose to 147 in 2011-12, and 2013 at 173. Consequently various committees like, Chaturvedi Committee, insisted on restructuring and reducing the number of such schemes.
  • Further, 14th Finance Commission also increased state share in taxes to 42%, which meant less & less funds with center to spend on such schemes.
  • As a result, the number of central sector schemes decreased rapidly and in 2015-2016 went down to just 31.

The NEW Classification of Government Schemes:

In 2016, after the dissolution of planning commission and formation NITI Aayog, a Sub-Group of Chief Ministers was formed on Rationalization of Centrally Sponsored Schemes (CSSs). The sub-group gave following major recommendations:

  • No. of Schemes: The total number of schemes should not exceed 30.
  • Categorisation of Schemes: Existing CSSs should be divided into Core and Optional Schemes.
  • Core schemes: Focus of CSSs should be on schemes that comprise the National Development Agenda where the Centre and States will work together in the spirit of Team India.
  • Core of the Core Schemes: Those schemes which are for social protection and social inclusion should form the core of core and be the first charge on available funds for the National Development Agenda.
  • Optional Schemes: The Schemes where States would be free to choose the ones they wish to implement. Funds for these schemes would be allocated to States by the Ministry of Finance as a lump sum.

And accordingly the Union budget identified & differentiated three-types of schemes, as:

  • Core of Core Schemes
  • Core Schemes
  • Schemes that are optional for States

The Present Scenario

Consequently, Government Schemes in India (all the schemes) can be classified into following major types:

1. Centrally Sponsored Schemes

(Funded both by Centre & States) | Currently, there are 29 centrally sponsored schemes. These are divided into two broad categories:

  • Core of the core schemes ( 6 Schemes)
  • Core schemes (24 Schemes). 

See – Centrally Sponsored Schemes

2. Central Sector Schemes

(Funded & executed directly by Centre) | These are second type of central welfare schemes being funded & implemented by centre directly. The different Union Ministries & departments are the executing agencies in these schemes. #Giveaway, you can identify some of them by their name example Pradhan Mantri abc yojana. Of Course, this is not a rule.

See- Central Sector Schemes

3. State Government Schemes

(Funded & executed solely by States) | These schemes are planned, funded & executed by the respective State Governments. #Giveaway, you can identify some of them by their name example chief minister abc  yojana. Of Course, this is not a rule.

See: List of Rajasthan State Government Schemes

Difference between Centrally Sponsored Scheme & Central Sector Scheme

The central welfare schemes at the state level fall into two broad categories. The first category is centrally sponsored schemes, and the second is the central sector schemes. Few Important differences between the two are:

Centrally Sponsored SchemeCentral Sector Scheme
They are jointly funded by the Centre and states.They are funded entirely by Union Government
Centrally Sponsored Schemes are implemented by the statesCentral Sector Schemes are implemented by Center directly.
The mainly cover items listed in states list.Central sector schemes are mainly formulated on subjects from the Union List.

Read Ahead:

Classification of Government Schemes | Classification of Government Schemes

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