Abstract
The study finds a considerable increase in non-statutory (tied) transfers, particularly evident after the abolition of the Planning Commission. Centrally sponsored schemes (CSS) constitute the largest portion of these non-statutory grants. Although the number of CSS has increased over time, the overall financial allocation has fallen during the last few years. A significant structural shift occurred in 2023–2024: the number of CSS schemes was first raised to 75 and then further to 82, while the previous rationalized categorization of ‘Core of Core’ and ‘Core’ schemes was simultaneously discontinued. The state-wise analysis shows that states such as Kerala, Haryana and Punjab receive the lowest per capita CSS compared to other states. The problem is compounded by implementation issues, as evidenced by the significant gap between the budgeted and actual CSS flows to Kerala.
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