Question

According to new classification system for the Centre’s spending which of the following statements is/are correct

Code:

• A. 1 only
• B. 2 only
• C. 1 and 3 only
• D. All of these

Answer 1

The correct option is B

2 only

Budget 2016-17 has introduced a new classification system for the Centre’s spending.

The new system divides Centrally Sponsored Schemes (CSS) into three categories:

Core of the Core: will retain their expenditure allocation framework; 8 in number including MGNREGA and all the umbrella schemes for the upliftment of minorities, Scheduled Castes, and Scheduled Tribes.

Core Schemes

From now onwards, the sharing pattern should be:

1. For 8 NE and 3 Himalayan States: Centre: State: 90:10
2. For other States: Centre: State: 60:40
3. For Union Territories: Centre: 100$\%$

33 in number, include schemes as far-ranging as the Krishi Unnati Yojana, the Smart Cities programme, and the modernisation of the police force

For Optional Schemes

1. For 8 NE and 3 Himalayan States: Centre: State: 80:20
2. For other States: Centre: State: 50:50
3. For Union Territories: Centre: 100$\%$

with the states having the flexibility to decide whether to invest in these or not.

This system is based on the recommendations of a sub-committee of chief ministers formed by Niti Aayog for the rationalisation of the CSS. This move provides greater flexibility to States with the Centre having say on some very important schemes and the states can take their own decisions regarding the others