Govt likely to discontinue some central schemes to rationalise expenditure in FY22

10-12-2020

The government is looking to discontinue some centrally sponsored schemes (CSS) and close some central sectors (CS) in the next fiscal as it aims to rationalize expenditure, owing to fiscal constraints. According to a report in the Economic Times, the finance ministry in a directive to other ministries and departments has said that these schemes may have to be discontinued even if they are found to be effective, owing to fiscal constraints. Calling for evaluation reports of various CSS and CS schemes from ministries and departments by January 15, 2021, the ministry in an office memorandum said: �Depending on the resource constraints, fiscal space and evolving priorities of government of India, even schemes with positive evaluation reports may in some cases have to be discontinued.� Expenditure secretary T V Somanathan in an earlier interview to the publication said the Centre had identified a number of schemes for rationalization. �We are going about it both through the budget process and separately,� he had said. However, the memorandum said schemes that show positive outcomes and justify the need for continuation from FY22 onward may be continued with modifications, depending on resource constraints. The appraisal of these schemes would be scheduled for February-March next year. However, no such scheme would be continued beyond the end of the current fiscal if the appraisal for continuation of the scheme has not been completed by March 31, 2021, the memorandum said.