CMs’ group pushes for flexibility in fund usage

In a step which may help states spend more on schemes of national importance, like MGNREGA, Swachchh Bharat Mission (SBM) and the mid-day meal programme, a Niti Aayog panel of chief ministers has suggested in its report to the Prime Minister’s Office (PMO) that states should be allowed the flexibility of using funds meant for schemes of limited impact on legistatively-backed or “core schemes”.

According to highly-placed sources, the Niti Aayog chief ministers’ sub-group on Centrally-sponsored schemes (CSS), headed by Madhya Pradesh CM Shivraj Singh Chouhan, has made the recommendation after heeding to suggestions from within the panel that states be given the freedom of spending funds from the quota earmarked for non-core or optional schemes (mainly social impact schemes) on core schemes.

The final report on CSS (after including the said point) was last week sent by Mr Chouhan to the PMO and, according to sources, a Cabinet note is likely to be moved on it soon so that the report can be approved by the Union Cabinet. As of now, states don’t have the freedom to spend funds meant for optional schemes on core schemes. The funds provided to them by the Centre for core schemes are to be compulsorily spent on schemes of national importance or which are backed by legislation.