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This is an archive article published on December 28, 2006

FM meets Montek today to decide on axing CSS

Montek Singh Ahluwalia, deputy chairman, Planning Commission, is scheduled to meet finance minister P Chidambaram on Friday to take a final call on weeding out a number of centrally-sponsored schemes...

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Montek Singh Ahluwalia, deputy chairman, Planning Commission, is scheduled to meet finance minister P Chidambaram on Friday to take a final call on weeding out a number of centrally-sponsored schemes CSS.

An expert group set up by the Planning Commission had suggested terminating 130 schemes that had a total outlay of Rs 8,432.81 crore in the current fiscal. It had recommended retaining only 25 schemes that accounted for a bulk, or 88.29 per cent, of the total CSS outlay of Rs 71,996.78 crore in 2006-07.

According to finance ministry sources, the government could axe many of these schemes in Budget 2007-08 since the current fiscal was the terminal year of the Tenth Five Year Plan. 8220;The Eleventh Five Year Plan can begin on a fresh note with sunset clauses mentioned for each scheme that needs to be retained. The other schemes can be merged with existing ones or weeded out,8221; said an official.

The finance ministry has been pushing for rationalisation of these schemes for the last couple of years since many of them served little purpose. 8220;Some of the schemes have been running for over 20 years now, and have outlived their utility,8221; the official added.

 

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