GoI provides funds to the state governments for its development



Quick Summary
The Union Government has allocated funds to state governments for development projects. These funds are provided through Centrally Sponsored Schemes, Central Sector Schemes, and Finance Commission grants. The Minister of State for Finance, Shri Pankaj Chaudhary, shared these details in the Lok Sabha, outlining the amounts transferred for the fiscal years 2020-21 and 2021-22.

Central transfers of funds for development of states

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:-

Government Funds Released for State Development Projects

(Rs in crore)

S. No.

Nature of Central Transfers to States

2020-21 (RE)

2021-22 (BE)

  1.  

Total Transfers excluding Tax Devolution

713014.40

674253.42

Of which

  1.  

Centrally Sponsored Schemes

315238.00

318857.20

  1.  

Central Sector Schemes

42374.08

43016.21

  1.  

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.

FAQ :

The Union Government provides funds to state governments through Centrally Sponsored Schemes (CSS), Central Sector Schemes (CS), Finance Commission grants (FC grants), and other grants, loans, or transfers, adhering to the guidelines of each scheme.

The details of central transfers to states were stated by the Minister of State for Finance, Shri Pankaj Chaudhary, in a written reply in the Lok Sabha.

The total central transfers to states, excluding tax devolution, for 2021-22 (BE) were Rs 674,253.42 crore.

Centrally Sponsored Schemes and Central Sector Schemes receive central funding.

The concerned State Governments and Central Ministries/Departments review and monitor the implementation of the schemes to ensure effective utilisation of funds.




News posted by

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.

Comments :


More »


Popular News





CCI Pro