Central schemes are divided into central sector schemes and centrally sponsored schemes. Now we briefly discuss them
1. Central sector schemes are 100% funded by the union government and implemed by the central government machinery.
2. Central sector schemes are mainly formulated on subjects from the union list. They account for 11% of the central government’s expenditure.
3. In centrally sponsored scheme (css) a certain percentage of the funding is borne by the states and the implementation is by the state governments.
4. Centrally sponsored schemes are formulated in subjects from the state list to encourage states to prioritize in the areas that require more attention. They account for 10% of central governments expenditure.
5. Usually centrally sponsored schemes are revised at the end of each five year plan period.
6. How ever after the discontinuation of 5 year plan , it has been decided that sunset date will be coterminous with financial commission cycles.
7. All the 28 centrally sponsored schemes have sunset clauses except MGNREGA under Ministry of Rural Development.