-Business Standard Financial position, spending capacity to play a big role, say sources The government might take a hard view on several social sector schemes, including the Prime Minister's pet projects of Digital India and Pradhan Mantri Krishi Sinchaee Yojana in the coming Budget for 2015-16. These might get a renewed thrust but perhaps not in the form of a significant increase in Plan allocation. New ways in which funds will be raised...

-The Business Standard Plan panel may skip annual meet with CMs in view of polls With general elections only a few months away, Planning Commission Deputy Chairman Montek Singh Ahluwalia might skip the customary one-to-one meetings with some chief ministers, while finalising the annual Plans for states, for 2014-15. According to a senior official, chief ministers usually avoid coming personally to discuss their annual plan ahead of a general election. The commission has...

-Outlook The government today approved Planning Commission's proposal to merge the 147 Centrally Sponsored Schemes (CSS) and bring it down to 66 across various sectors for effective implementation and monitoring of the 12th Five Year Plan. "The Union Cabinet has approved the proposal to merge CCS", Information and Broadcasting Minister Manish Tewari told reporters after the meeting. Last month, a Group of Ministers, headed by Agriculture Minister Sharad Pawar, had approved merging of...

-Down to Earth Budget to start process of reforming Central rural schemes, 45 years after first demand India’s rural development programmes are in for an overhaul. After the approval of the 12th Plan by the National Development Council (NDC) on December 27, 2012, the government has started restructuring of the behemoth called Centrally sponsored schemes (CSSs). In the Plan (2012-17) the Centre has committed Rs 541,276 crore for CSSs covering rural development,...

The total expenditure on central schemes for the poor and on the major subsidies exceeds the states' share of central taxes. These schemes are chronic bad performers due to a culture of immunity in public administration and weakened local governments. Arguing that the poor should be trusted to use these resources better than the state, a radical redirection with substantial direct transfers to individuals and complementary decentralisation to local governments...