Govt Initiates Comprehensive Review Of Central Schemes For 2026-2031 Cycle

(MENAFN- KNN India) New Delhi, May 30 (KNN) The Ministry of Finance's Department of Expenditure conducted a high-level workshop on Thursday, with secretaries from various government ministries and departments to launch a comprehensive evaluation process for Centrally Sponsored Schemes and Central Sector Schemes.

The exercise aims to determine which programs will continue beyond their current authorisation period, with the new five-year cycle scheduled to begin on April 1, 2026, coinciding with the 16th Finance Commission period.

Cabinet Secretary Dr. T.V. Somanathan presided over the workshop, which was attended by Finance Secretary Ajay Seth, Secretary of Department of Economic Affairs, Secretary of Department of Expenditure Vumlunmang Vualnam, and secretaries from multiple government ministries.

Financial advisors and senior officials from various departments also participated in the proceedings.

The government's policy framework for scheme evaluation, first announced in the 2016 Union Budget, mandates that every government program must have a defined end date and undergo outcome-based review to enhance public expenditure quality.

This systematic approach aligns scheme durations with Finance Commission cycles and bases continuation decisions on independent third-party evaluations.

During the meeting, the Cabinet Secretary emphasised the importance of rigorous evaluation processes and encouraged departmental heads to utilise assessment findings to redesign program architecture, eliminate redundancies, merge overlapping initiatives, and discontinue schemes that have either achieved their objectives or lost relevance.

This approach is intended to optimise the allocation of limited public resources.

The Department of Expenditure briefed participants on available financial resources and outlined the criteria likely to govern resource allocation for each ministry's programs during the upcoming five-year period.

Currently, 54 Centrally Sponsored Schemes and 260 Central Sector Schemes are set to expire on March 31, 2026, and will require fresh evaluation. Most of these programs will need new Cabinet approval for continuation.

These schemes span diverse sectors including healthcare, women and child development, education at school and higher levels, tribal welfare, agriculture, urban and rural infrastructure development, water and sanitation services, environmental protection, and scientific research initiatives.

Officials highlighted that previous evaluation exercises have enabled the central government to significantly increase capital expenditure, which now reaches Rs. 11.21 lakh crore in the 2025-26 budget estimates.

This demonstrates the effectiveness of systematic expenditure review in reallocating resources toward priority areas.

Participants also discussed implementing just-in-time fund release mechanisms to prevent idle fund accumulation.

Under the current framework, Central Sector Schemes receive complete funding from the central government, while Centrally Sponsored Schemes involve predetermined cost-sharing arrangements between central and state governments.

The Ministry of Finance continues to focus on improving expenditure quality through contemporary program design and more precise beneficiary targeting.

The evaluation process follows established government policy, with the Development Monitoring and Evaluation Organisation within NITI Aayog conducting assessments of Centrally Sponsored Schemes, while third-party agencies selected by respective ministries evaluate Central Sector Schemes.

This independent evaluation mechanism ensures objective assessment of program effectiveness and impact.

(KNN Bureau)

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