Finance Ministry Calls for Streamlining of Central Schemes Ahead of 2026 Deadline



Quick Summary
The Finance Ministry is initiating a comprehensive review of all Central Sector Schemes and Centrally-Sponsored Schemes due to expire in March 2026. This policy push aims to rationalise government expenditure, eliminate duplication, and curb wasteful spending by focusing on outcome-driven approaches. A total of 314 schemes across various sectors will undergo a five-yearly evaluation, with continuation dependent on a thorough assessment and alignment with fiscal discipline and broader macroeconomic goals.

In a major policy push to rationalise government expenditure and eliminate overlapping initiatives, the Finance Ministry has called for a stricter and outcome-driven approach to reappraise all Central Sector Schemes (CSs) and Centrally-Sponsored Schemes (CSSs) that are set to end by March 31, 2026.
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FAQ :

The Finance Ministry is calling for streamlining to rationalise government expenditure, eliminate overlapping initiatives, curb wasteful spending, and address rising administrative and consultancy costs.

The schemes being reviewed are set to end by March 31, 2026.

A total of 314 schemes are under review, comprising 54 Centrally-Sponsored Schemes and 260 Central Sector Schemes.

Continuation will depend on a comprehensive evaluation, including findings from independent evaluations, alignment with intended outcomes, integration of state initiatives, transition to sustainability, and flexibility for merging or customising schemes.

Budgetary allocation will be based on a calculated average of expenditures between FY 2021-22 and FY 2024-25, multiplied by a factor of 5.5.

The goal is to improve public expenditure efficiency, ensure taxpayer money is used for schemes delivering measurable results, and address contemporary needs while creating fiscal space for new priorities.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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