The Union Finance Ministry has issued fresh flexi-fund guidelines for the Centrally Sponsored Schemes (CSS).
These flexi-fund guidelines will give states more freedom in spending money under the CSS to meet local developmental requirements.
These guidelines were based on the instructions issued by NITI Aayog for rationalisation of Centrally Sponsored Schemes.
These recommendations were based on instructions of the sub-group of Chief Ministers of states and consultations with stakeholders.
Key Points
Under the new norms, flexi-funds in each CSS has been increased from the current 10% to 25% for states and 30% for Union Territories.
This means that states if they so desire can set aside 25% of any CSS as flexi-fund to be spent on any sub-scheme or innovation or component that is in line with the overall aim and objective of the approved Centrally Sponsored Scheme.
States can use the fund to satisfy local requirements in areas affected by internal security disturbances or to undertake mitigation or restoration activities in case of natural calamities.
State governments will have to constitute a state-level sanctioning committee (SLSC) to avail of the flexi-fund facility.
This facility is not for CSS which emanate from a legislation, like MNREGA.
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