Fresh guidelines for flexi-fund

Centre gives states more freedom to spend funds under CSS

Question: Under the new norms, flexi-fund in each CSS has been increased from the current 10 percent to what percentage for the states?
(a) 15 %
(b) 20%
(c) 25%
(d) 30%
Ans: (c)
Related facts:

  • On 11 September 2016 Government of India issued fresh flexi-fund guidelines that will give more freedom to states in spending money under the Centrally Sponsored Schemes (CSS) to meet local developmental requirements.
  • Under the new norms, flexi-funds in each CSS has been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories.
  • The flexi-fund component will provide “flexibility” to states to meet local needs and requirements and pilot innovation to improve efficiency.
  • States can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.
  • However, state governments will have to constitute a state-level sanctioning committee (SLSC) to avail of the flexi-fund facility.
  • It should be known that based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of CSS.

Reference:
http://www.business-standard.com/article/news-ani/centre-gives-states-more-freedom-to-spend-funds-under-css-116091100606_1.html
http://www.ndtv.com/india-news/states-get-more-freedom-to-spend-funds-under-centrally-sponsored-schemes-1457237
http://www.thestatesman.com/news/business/-states-get-more-freedom-to-spend-funds-under-css/164423.html
http://airworldservice.org/english/archives/33048