Centre Likely To Save Rs 30,000 Crore On Central Schemes Amid Elections And Tight Scrutiny Of Funds—What You Need To Know

The government is projected to save nearly Rs 30,000 crore from the allocated Rs 5.05 lakh crore for Centrally Sponsored Schemes (CSS) in the current fiscal year, primarily due to delayed state spending and tighter monitoring of fund usage.

These savings are expected to be redirected towards other expenditure priorities.

Around Rs 17,000 crore of the savings are attributed to slower progress in flagship schemes such as Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PMJAY) and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). 

The delay has been linked to the Lok Sabha and state elections impacting fund utilisation timelines.

An additional Rs 13,000 crore is expected to be saved by addressing inefficiencies and plugging loopholes across various schemes.

The Centre had increased its allocation for CSS by 9.8 per cent in the 2024-25 budget, making it Rs 5.05 lakh crore, which represents about 10.4 per cent of the total expenditure budget of Rs 48.2 lakh crore.

These schemes also account for nearly half of the Centre’s capital expenditure this fiscal year.

Efforts are underway to encourage states to accelerate spending, but officials cited in Economic Times report expect that a portion of the allocated funds will remain unutilised.

Since 2015, the government has reduced the number of CSS from 130 to 75 as part of a rationalisation drive initiated by Prime Minister Narendra Modi.

The ultimate goal is to streamline these schemes to a total of 50, with ministries assessing their performance based on fund utilisation, impact, and future relevance.

Additionally, NITI Aayog is working on further rationalisation of schemes in critical sectors such as agriculture, health, skill development, urban infrastructure, water resources, and the environment.

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