Appraisal and approval of Centrally Sponsored Schemes (CSSs) and the Central Sector Schemes (CSs)

The Department of Expenditure, under the Union Ministry of Finance, has launched a major review and appraisal process for all Centrally Sponsored Schemes (CSSs) and Central Sector Schemes (CSs). This process will determine whether these schemes will continue into the next five-year cycle starting 1st April 2026, in alignment with the 16th Finance Commission cycle.

Key Policy Framework:

• The 2016 Union Budget mandated:
  • Every scheme should have a sunset date.
  • Each scheme must undergo an outcome-based review.
• This led to the alignment of schemes with Finance Commission cycles.
• Continuation of schemes depends on third-party evaluations.

Current Status and Process:

• 54 CSSs and 260 CSs are due for re-appraisal as their current approval ends on 31st March 2026.
• The Department of Expenditure has briefed ministries on:
  • Financial resource availability.
  • Norms for determining resource envelopes for schemes over the next cycle.

Funding Mechanism:

• Central Sector Schemes (CSs):
  • 100% funded by the Government of India.
  • Evaluated by third-party agencies selected by respective Ministries.
• Centrally Sponsored Schemes (CSSs):
  • Cost shared between the Centre and State Governments.
  • Evaluated by the Development Monitoring and Evaluation Organisation (DMEO), NITI Aayog.

(Source: PIB)