New Delhi: The Union finance ministry has reportedly asked all ministries and departments to set defined sunset clauses and implementation timelines for every Centrally Sponsored Scheme (CSS) as the government prepares for the 16th Finance Commission cycle beginning 1 April 2026.
In a directive issued in early December, the Department of Expenditure instructed ministries to update their appraisal reports with expanded disclosures and submit them by the first week of January, an extension from the earlier end-of-December deadline.
The enhanced requirements include justification for continuing each scheme, a five-year comparison of actual spending against budgeted allocations, detailed fund-flow records from the Centre to end beneficiaries and information on posts created specifically for scheme implementation.
According to reports, officials said the added data will help measure performance more precisely, spotlight departments that consistently underspend, and map the time taken at each stage of fund approval and release.
The appraisal exercise, conducted every five years, evaluates expenditure quality, fund utilisation and outcomes, enabling the government to streamline or discontinue outdated programmes.
Schemes assessed by NITI Aayog will undergo the same review process. Even where third-party studies exist, ministries must provide their own analysis and evidence alongside external evaluations, the directive noted.
Discussion about this post