<h1>Central transfers to states set funding channels and monitoring under scheme guidelines, shaping state development allocations.</h1> The Union Government allocates funds to State Governments through Centrally Sponsored Schemes, Central Sector Schemes, Finance Commission grants and other grants/loans/transfers within the availability of Gross Budgetary Support, with Union Budget presentations showing totals and a breakdown by transfer type; State Governments and Central Ministries/Departments review and monitor implementation as per scheme guidelines to ensure effective utilisation and conformity of expenditures.