Q. Consider the following statements:
1.The Central sponsored schemes are 100% funded by central government.
2.These schemes are mainly formulated on subjects from the Union List.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D

Explanation: The exercise of planned development in India has evolved two types of schemes over the time, viz., —Central Sector Scheme and Centrally Sponsored Scheme.

  • The names are derived from the pattern of funding and the modality for implementation.
  • The Central Sector Schemes are 100 per cent funded by the Union Government and implemented by the Central Government machinery.
  • These schemes are mainly formulated on subjects from the Union List. In addition, the Central ministries also implement some schemes directly in the states/UTs, which are called Central Sector Schemes, but resources under these schemes are not generally transferred to states.
  • Under the Centrally Sponsored Schemes (CSSs) a certain percentage of the funding is borne by the Centre and the states in the ratio of 50:50, 70:30, 75:25 or 90:10 and the implementation is done by the state governments.
  • CSSs are formulated in subjects from the State List to encourage states to priorities in areas that require more attention.

Source: TMH Ramesh Singh