Revamping India's Spending: Government's Bold Overhaul of Centrally Sponsored Schemes

The Finance Ministry has begun a comprehensive appraisal process for centrally sponsored and central sector schemes to be effective from April 1, 2026. This aligns with the 16th Finance Commission cycle. A workshop led by Cabinet Secretary T V Somanathan focused on evaluating and improving scheme effectiveness and efficiency.

The Finance Ministry has launched an in-depth evaluation of centrally sponsored and central sector schemes, set to commence in 2026. This strategic move aims to synchronize with the 16th Finance Commission's timeline, ensuring effective allocation and use of public finances over the next five years.

Chaired by Cabinet Secretary T V Somanathan, a workshop brought together key secretaries from various ministries. The focus was on evaluating current schemes, identifying inefficiencies, and streamlining operations to optimize resource deployment. The process will involve reappraising 54 centrally sponsored schemes and 260 central sector schemes due for approval by March 31, 2026.

New norms are being discussed to decide resource allocation for the next cycle. These schemes span health, education, agriculture, and infrastructure, addressing vital sectors across India. This approach continues the government's commitment to quality public expenditure, as previously highlighted in the 2016 Union Budget.