Report of the Committee of NDC on Centrally Sponsored Schemes

Abstract

The Report of the Committee of the National Development Council (NDC) on Centrally Sponsored Schemes (CSS) examines the inefficiencies in the allocation and management of central funds to states, particularly since the Fourth Five-Year Plan, and proposes measures to enhance the effectiveness of CSS in India. The report highlights the need to review the number of CSS and the financial ceilings, previously set at one-sixth or one-seventh of total central assistance, to ensure equitable distribution and efficient implementation. Chaired by Shri P.V. Narasimha Rao, the NDC Committee recommended retaining 125 schemes with national significance and transferring 113 schemes to state plans, amounting to ₹1,260.72 crores, while retaining 125 schemes with an outlay of ₹14,104.17 crores. Funding for transferred schemes is advised to follow the modified Gadgil formula, taking population and tax effort into account, with a structured consultation mechanism between central and state governments to guide the introduction of new schemes. Implementation timelines were set for the Eighth Plan, with some recommendations to initiate earlier. The report underscores rationalization of CSS through careful retention, systematic transfer, and a collaborative framework that strengthens state autonomy while addressing national objectives such as poverty alleviation and regional development. By proposing financial ceiling revisions, structured consultation, and scheme prioritization, the report seeks to improve governance, reduce duplication, and ensure that CSS contribute effectively to India’s socio-economic goals.