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Context:
Finance Ministry’s New Guidelines on Continuation and Funding of Government Schemes to enhance outcome-based budgeting and ensure fiscal discipline across all Central and Centrally Sponsored Schemes (CSS) through mandatory evaluations, sunset clauses, and fund ceilings during the 16th Finance Commission cycle (FY26–FY31).
Conditional Continuation of Schemes
- Schemes will continue only if:
- Third-party evaluation shows positive outcomes.
- There is a need for continuation based on performance and relevance of objectives.
- Applies to fully funded Central schemes and Centrally Sponsored Schemes (CSS) ending on March 31, 2026.
- 54 Central Schemes
- 260 CSS under review
- Evaluation responsibility: Line Ministries + NITI Aayog
Special Provision for MGNREGS and Demand-Driven Schemes
- Schemes like MGNREGS will be subject to:
- Pre-approved outlay limits based on projected beneficiary count.
- Any increase in beneficiaries will need fresh approval from the Department of Expenditure.
- Unspent committed expenditure can be carried forward, but within the cycle limit.
