Union Government on 9 September 2016 issued fresh flexi-fund guidelines for Centrally Sponsored Schemes (CSS). The guidelines would give more freedom to states in spending money under the CSS to meet local developmental requirements.
Under the new norms, flexi-funds in each CSS have been increased from the current 10 percent to 25 percent for states and 30 percent for Union Territories. Now, the states can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.
The guidelines said that state governments will have to constitute a state-level sanctioning committee to avail of the flexi-fund facility. The flexi-fund facility is not for CSS which emanate from legislation, like MNREGA. Based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of Centrally Sponsored Schemes.
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When: 9 September 2016