Centrally Sponsored Scheme
Expenditure Intermediateकेंद्र प्रायोजित योजना
Definition
A Centrally Sponsored Scheme (CSS) is designed by the Central government but implemented by states with shared funding. The Centre-state funding ratio varies (typically 60:40 or 75:25 for NE states). Major CSSes include MGNREGA, PM Awas Yojana, Samagra Shiksha, and National Health Mission. They are different from Central Sector Schemes which are 100% funded by the Centre.
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Why Centrally Sponsored Scheme Matters
Understanding centrally sponsored scheme is essential for anyone following government finances, preparing for competitive exams, or analysing India's economic policy. This concept directly affects how the government allocates resources and plans its fiscal strategy.
In the context of India's Union Budget 2026-27, with a total size of Rs 53.47 lakh crore, terms like centrally sponsored scheme help citizens and analysts evaluate whether the government is on the right fiscal path. The numbers in the budget are only meaningful when one understands the underlying concepts.
For UPSC aspirants, centrally sponsored scheme is frequently tested in both Prelims and Mains, particularly in Paper III (Economic Development). For CA and MBA students, this concept appears in public finance and macroeconomics courses.
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