Based on the recommendation of the Sub Group of Chief Ministers and in consultation with various Ministries/ Departments and other Stakeholders, GoI has rationalized the existing 66 Centrally Sponsored Schemes (CSSs) into 28 schemes for CSSs which was communicated by NITI Aayog vide it’s O.M. dated 17.08.2016. It may also be stated that following the implementation of the recommendations of the 14th Finance Commission, the devolution to States has been increased from 32% to 42%, thereby increasing the resource availability with the States vis-a-vis the Centre. Further, the level of flexi fund available in each CSS has been raised from 10% to 25%. This was done to enable the States to satisfy the local needs and undertake innovations. The trend in outlays in the Expenditure Budget of GoI for 28 CSSs for the last five years shown below reflects an increase of around 60% in 2019-20 BE (I) compared to actual of 2015-16.

(Rs. in Crore)

Scheme Category	Actual 2015-16	Actual 2016-17	Actual 2017-18	RE 2018-19	BE (Interim) 2019-20
CSS	2,03,740	2,41,296	2,85,448	3,04,849	3,27,679

This was stated by Smt. Nirmala Sitharaman, Union Minister of Finance & Corporate Affairs in a written reply to a question in Lok Sabha today.

Centrally Sponsored Schemes rationalization increases state flexibility and expenditure share, raising flexi fund and fiscal devolution consequences. Central Government consolidated Centrally Sponsored Schemes from sixty-six to twenty-eight and increased the flexi fund within each scheme, enhancing States' ability to prioritise local needs. Implementation of Finance Commission recommendations raised central tax devolution to States, increasing their resource availability. These structural changes coincided with an upward trend in Union Expenditure Budget outlays for the consolidated schemes, culminating in a marked rise in the interim budget estimate for the latest year, as reported by the finance minister in Parliament.