Examine the implications of persistent underspending in Centrally Sponsored Schemes. Analyse the reasons behind such underspending. Discuss its consequences for welfare governance.
Kartavya Desk Staff
Topic: Welfare schemes for vulnerable sections of the population by the Centre and States
Topic: Welfare schemes for vulnerable sections of the population by the Centre and States
Q2. Examine the implications of persistent underspending in Centrally Sponsored Schemes. Analyse the reasons behind such underspending. Discuss its consequences for welfare governance. (15 M)
Difficulty Level: Medium
Reference: TH
Why the question Persistent underspending in Centrally Sponsored Schemes has become a recurring feature in recent Union Budgets and audit findings, raising concerns about the effectiveness of welfare delivery and the health of fiscal federalism. Key demand of the question The question requires examining the implications of chronic underspending in CSS, identifying the structural and administrative reasons behind it, and discussing its consequences for welfare governance and Centre–State relations. Structure of the answer Introduction Briefly contextualise CSS as key instruments for realising social welfare commitments, while highlighting the growing gap between allocations and actual expenditure. Body Implications of persistent underspending for welfare outcomes, accountability, and cooperative federalism. Reasons for underspending focusing on scheme design, fund release patterns, and State-level fiscal and administrative capacity. Consequences for welfare governance in terms of service delivery gaps, regional disparities, and blurred institutional responsibility. Conclusion Underline the need to align fiscal design, administrative capacity, and federal cooperation to ensure that welfare spending translates into tangible social outcomes.
Why the question
Persistent underspending in Centrally Sponsored Schemes has become a recurring feature in recent Union Budgets and audit findings, raising concerns about the effectiveness of welfare delivery and the health of fiscal federalism.
Key demand of the question
The question requires examining the implications of chronic underspending in CSS, identifying the structural and administrative reasons behind it, and discussing its consequences for welfare governance and Centre–State relations.
Structure of the answer
Introduction Briefly contextualise CSS as key instruments for realising social welfare commitments, while highlighting the growing gap between allocations and actual expenditure.
• Implications of persistent underspending for welfare outcomes, accountability, and cooperative federalism.
• Reasons for underspending focusing on scheme design, fund release patterns, and State-level fiscal and administrative capacity.
• Consequences for welfare governance in terms of service delivery gaps, regional disparities, and blurred institutional responsibility.
Conclusion Underline the need to align fiscal design, administrative capacity, and federal cooperation to ensure that welfare spending translates into tangible social outcomes.