Centre to put all its schemes under zero-base budget: FM

New Delhi, Mar 3 (UNI) Finance Minister P Chidambaram today (Mar 3, 2006) said the Government had decided to put all centrally-sponsored schemes (CSS) under 'zero-base budgeting' catergory to pave way for abolishing of those which had lost their relevance and utility.

Proposing a change in the present dispensation with regard to CCSs, Mr Chidambaram said in the Lok Sabha that the central funds allotted to CCSs should be transferred to the states which may be made responsible for implementing and monitoring these schemes as per their requirements.

Moreover, the State Governments are more closer to the people and could engage the Panchayati Raj institution in implementation of CSSs, he added.

The Finance Minister sought to allay some members' apprehensions on how states' facing financial constraints could manage such schemes, saying states were now capable of doing so since most of them had controlled their fiscal deficit and improved their financial situation.

In this context, he said, their share in central taxes had increased from Rs 74,000 crore in 2004-05 to Rs 95,000 crore in 2005-06 and now proposed to enhance it to Rs 1,13,000 crore in the Budget of 2006-07.

The Finance Minister's announcement, however, attracted a big applause from the Left parties particularly.

Mr Chidambaram said the Centre would only focus on its flagship programmes like Bharat Nirman and Rojgar Guarantee Programme.

UNI