The Comptroller and Auditor General of India (CAG) has constituted a committee to look into “problems and issues” in the Centrally Sponsored Schemes (CSS), which will make recommendations to strengthen their budgeting, accounting and payment framework, a top official told The Indian Express.
The official said that the panel was constituted to implement outcomes of the Second State Finance Secretaries Conference held in New Delhi on September 19, which was attended by officials from the Ministry of Finance, RBI, the CAG and state governments.
“We have constituted a committee to look at the problems and issues in the Centrally Sponsored Schemes. Basically, for strengthening the budgeting, accounting and payment framework for the Centrally Sponsored Schemes,” the official told The Indian Express.
The official said the committee’s mandate is not to deliberate about the delivery of the CSS. “It is about budgeting. For example, Sustainable Development Goals (SDGs) are linked with some individual schemes. It is depicted very well in some states like Haryana and Rajasthan and in many states it is not. In some states, the Central share in the Centrally Sponsored Schemes is depicted very well… You can see that in the Budget,” the official said.
The official said, “We looked at 8-10 topics, which were discussed in the State Finance Secretary Conference. The State finance secretaries had made a presentation on these topics. After that, it was felt there is a need to strengthen the budgeting, accounting and payment framework of the CSS. The committee was constituted in October. It is likely to submit its report by February-March next year. The committee comprises senior officials from the CAG, four state finance secretaries, and officials from the departments concerned.”
Rising funds, more scrutiny
The CAG’s decision is significant as allocation for CSS has been rising over the years with some schemes having an annual budget of over `50,000 crore. The government has also started the process of evaluating schemes before allowing their continuation in the next finance commission cycle, beginning April 2026.
In the Union Budget 2025-26, the Centre has allocated Rs 5.41 lakh crore for the CSS, of its total spending of Rs 50.65 lakh crore. There were several schemes, including MGNREGS, Jal Jeevan Mission and PM-Kisan, each having an annual budget of over Rs 50,000 crore.
Each rupee the government spends, 8 paise go to the CSS.
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There are 54 CSSs and 260 Central Sector Schemes which have their terminal date of approval until March 31, 2026 and are likely to be submitted for re-appraisal, according to the Finance Ministry.
