June 15, 2020

How Centrally Sponsored Schemes becoming a hurdle to Covid-19 fight

In their Financial Express article, IDFC Institute's Sharmada Srinivasan and Prakhar Misra argue three reasons why centrally sponsored schemes need to be reworked;


"First, states are scrambling for financial resources and finding it hard to meet their end of the bargain when it comes to these schemes...

Second, even if states were to allocate funds, the transfer from the Centre would have to wait until pre-imposed conditionalities were met...

Finally, centralising fiscal decisions does not make for effective crisis response...Thus, funds that may not be used—such as money for mid-day meals at schools that are now shut—should be utilised in other ways to ensure well-being of people. Unfortunately, the CSS structure does not allow for such reallocation."



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