India Begins Appraisal of Centrally Sponsored Schemes (CSS) in 2025
The Central Government has officially started the five-yearly appraisal of Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CSs) in May 2025. This process evaluates performance, funding efficiency, and continuation of key welfare and development schemes—critical for taxpayers and consultants tracking public finance and tax planning.
What Are Centrally Sponsored and Central Sector Schemes?
| Scheme Type | Funded By | Implemented By | Example |
|---|---|---|---|
| CSS (Centrally Sponsored Schemes) | Shared by Centre & States | Mostly State Governments | PM Awas Yojana (Gramin), MGNREGA |
| CS (Central Sector Schemes) | 100% by Central Government | Central Ministries/Departments | PM Kisan, Jal Jeevan Mission |
Why This Appraisal Process Matters in 2025
- New 15th Finance Commission Cycle (2021–26) nearing end
- Budgetary rationalisation is critical with 2025–26 being a pre-election year
- Many schemes have large outlays (₹3–5 lakh crore annually)
- Push for better outcome-based budgeting
- States demand more autonomy and flexibility in fund usage
Keyphrase Focus: Appraisal of Centrally Sponsored Schemes
Government’s 2025 Approach to CSS Appraisal
- NITI Aayog is spearheading scheme reviews
- Expenditure Department (DEA) and line ministries involved in performance-based assessment
- Possible merger or discontinuation of underperforming schemes
- Stakeholder consultations ongoing with States and Union Territories
Legal Basis & Budget Link
- CSS and CS schemes derive authority under Article 282 of the Indian Constitution
- Appraisals align with Rule 4(2) of the General Financial Rules (GFR), 2017
- Union Budget 2025 laid foundation for this appraisal cycle by setting performance audit triggers
- CAG and PAC often flag underutilisation or leakages in CSS funds
How It Affects Taxpayers and Consultants
- Budget allocations may shift for popular schemes like MGNREGA, PMGSY, PMAY
- Indirect tax-linked schemes like Fertiliser Subsidy, Food Subsidy may see restructuring
- Fiscal deficit targets (4.5% by FY26) demand leaner schemes and better ROI
Expert View
“This appraisal could drive a sharper focus on accountability and real outcomes. Schemes may be trimmed, merged, or redesigned with better performance indicators,”
— Ramesh Gupta, Public Policy Advisor
Summary
The Government has launched the 2025 appraisal of Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CSs), assessing effectiveness and funding. Led by NITI Aayog and DEA, the review may result in mergers, discontinuations, or restructuring of schemes—impacting taxpayers, budgets, and the national development agenda.
FAQs
Q1: What is the difference between CSS and CS schemes?
CSS are jointly funded by Centre and States, while CS schemes are fully funded and implemented by the Centre.
Q2: Who is conducting the CSS appraisal in 2025?
NITI Aayog, Ministry of Finance, and line ministries are jointly leading the review.
Q3: Will popular schemes like MGNREGA be discontinued?
Not necessarily. Only underperforming schemes face the risk of merger or revamp post evaluation.
Q4: How often is this appraisal done?
Once every five years, typically in sync with Finance Commission cycles.