Difference between Central Sector Schemes and Centrally Sponsored Schemes

In India’s developmental plan exercise we have two types of schemes viz; central sector and centrally sponsored scheme. The nomenclature is derived from the pattern of funding and the modality for implementation.

1. Under Central sector schemes, These are 100% funded by the Union government and implemented by the Central Government machinery. 

           Central sector schemes are mainly formulated on subjects from the Union List.

           In addition, the Central Ministries also implement some schemes directly in States/UTs which are called                Central Sector Schemes but resources under these Schemes are not generally transferred to States.

    2.  Under Centrally Sponsored Scheme (CSS) : A certain percentage of the funding is borne by the               States in the ratio of 50:50, 70:30, 75:25 or 90:10 and the implementation is by the State                             Governments. 

        Centrally Sponsored Schemes are formulated in subjects from the State List to encourage States to           prioritise in areas that require more attention.

         Funds are routed either through consolidated fund of States and or are transferred directly to State/ District            Level Autonomous Bodies/Implementing Agencies. 

As per the Baijal Committee Report, April, 1987, CSS have been defined as the schemes which are funded directly by Central Ministries/Departments and implemented by States or their agencies, irrespective of their pattern of financing, unless they fall under the Centre's sphere of responsibility i.e., the Union List.

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