The Union Government provides funds to the State Governments under the Centrally Sponsored Schemes (CSS), Central Sector Schemes (CS), Finance Commission grants (FC grants) and Other Grants /Loans/Transfers as per the guidelines of the respective Scheme within the availability of Gross Budgetary Support with the Union Government. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.

The Minister gave details of central transfers to States as per the Union Budget 2020-21(RE) and 2021-22 (BE) as under:-

(Rs in crore)

S. No.	Nature of Central Transfers to States	2020-21 (RE)	2021-22 (BE)
	Total Transfers excluding Tax Devolution	713014.40	674253.42
	Of which
	Centrally Sponsored Schemes	315238.00	318857.20
	Central Sector Schemes	42374.08	43016.21
	Finance Commission Transfers	182352.43	220843.00

The concerned State Governments and Central Ministries/Departments review and monitor implementation of the schemes as per the scheme/programme specific guidelines to ensure effective utilization of funds including expenditure incurred, the Minister said.

Central transfers to states set funding channels and monitoring under scheme guidelines, shaping state development allocations. 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.