Rule 232 — GFR

Rule 232 General Principles for award of Grants-in-aid for Centrally Sponsored Schemes. The following principles should be kept in view by Ministries/Departments of the Central Government at the time of designing Centrally Sponsored Schemes for implementation in State Governments or Union Territories and approving and releasing assistance to State Governments or Union Territories for such schemes: -

(i) Every Centrally Sponsored Scheme should have a time- bound quantifiable and measurable outcome targets with provisions for periodic monitoring, mid-term evaluation and detailed impact studies.

(ii) The scheme should be designed in consultation with States and Union Territories. States should be delegated adequate powers to change the details of the schemes to suit local conditions, subject to reporting such changes to the concerned Ministry or Department.

(iii) Where schemes are in operation with similar objectives targeting the same population, the schemes should be converged.

(iv) To ensure monitoring and effective control over such schemes, the number of schemes should be restricted, so that the gain from the expenditure on such schemes is maximized. The role of the Central Ministries or Departments should be capacity building, inter-sectoral coordination and detailed monitoring.

(v) The release of funds to State Governments and monitoring further utilisation should be undertaken through PFMS. The Ministries or Departments should establish a mechanism to ensure that the funds earlier released have been effectively utilised and that the data and facts reported by the State Governments or Union Territories relating to physical and financial performance are correct. Before releasing further funds, it should also be ensured that the State Governments or Union Territories have the capacity to actually spend the balance from the previous years and the releases during the current year.

(vi) The Ministries or Departments should focus attention on the attainment of the objectives and not on expenditure only. A mechanism for avoiding release of large part of funds towards the end of the year should be devised and incorporated in the Scheme design itself.

(vii) A concurrent monitoring and evaluation mechanism should be built into the Scheme. A periodic review of every Centrally Sponsored Scheme should be undertaken for any required mid- course correction or changes in the scheme design

(viii) A post-completion review of every Centrally Sponsored Scheme should be undertaken by the State Government

(s) or Union Territories implementing the scheme, highlighting the time and cost overruns, if any, and suggestions for formulating and implementing future schemes. A copy of the review should be obtained by the Ministry concerned and kept in view while formulating new Centrally Sponsored Schemes.