Centre pushes to merge, rationalise schemes

54 centrally sponsored and 260 central-sector schemes may be reappraised for next financial year

- SHREYA NANDI & RUCHIKA CHITRAVANSHI

The finance ministry has directed all government departments and ministries to rationalise centrally sponsored and central sector schemes to improve efficiency and merge overlapping schemes.

The exercise is to be completed by March, a senior government official told Business Standard.

“The expenditure department (under the Ministry of Finance) wants to rationalise central sector and centrally sponsored schemes. Similar schemes, or those not achieving the desired outcomes, should be discontinued or merged wherever possible. Currently, there are a large number of schemes. Rationalisation will help in better monitoring,” the official said. Government departments and ministries will submit their recommendations, with the final decision resting with the expenditure department.

“Several schemes are up for appraisal for the next financial year. The exercise has to be completed before that,” the official added. The Union Budget 2026-27 is expected to be presented on February 1.