Evaluation of Centrally Sponsored Schemes
The Government of India has initiated a comprehensive evaluation of Centrally Sponsored Schemes (CSSs) and Central Sector Schemes (CSs). This exercise aims to assess the effectiveness and relevance of these schemes over the next five years, starting from April 2026. The evaluation aligns with the 16th Finance Commission cycle and follows a workshop led by key officials from the Ministry of Finance.
Purpose of the Evaluation
The evaluation aims to improve public expenditure quality. It seeks to ensure that each scheme has a defined sunset date and undergoes outcome reviews. This strategy was first articulated in the Union Budget Speech of 2016. The Government believes that rigorous evaluations can lead to better resource allocation and enhanced scheme effectiveness.
Structure of the Schemes
There are 54 CSSs and 260 CSs currently in operation. CSSs are co-funded by both the central and state governments, whereas CSs are fully funded by the central government. Each scheme’s continuation will depend on third-party evaluations and their alignment with the Finance Commission’s recommendations.
Financial Overview
The Department of Expenditure provided insights on financial resources available for the upcoming cycle. The budget for capital expenditure stands at Rs. 11.21 lakh crore for FY 2025-26. This funding puts stress on the government’s commitment to enhancing infrastructure and social services through well-evaluated schemes.
Policy Priorities
Key policy priorities discussed included adopting a challenge mode of financing, promoting universal Aadhaar-based Direct Benefit Transfers (DBT), and ensuring the convergence of various schemes. These strategies aim to eliminate duplication of efforts and drive meaningful reforms.
Implementation Strategies
The government emphasised the need for timely fund releases to avoid fund parking. This concept of ‘just in time’ funding will allow the government to reallocate savings from completed schemes to new or ongoing projects, thus enhancing overall efficiency.
Evaluation Agencies
The Development Monitoring Evaluation Organisation (DMEO) in NITI Aayog is responsible for evaluating CSSs. For CSs, evaluations are conducted by third-party agencies selected by the respective ministries. This dual approach ensures a broad and objective assessment of scheme effectiveness.
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