Para 3.23.16 — MSO (Audit)
Original Rule Text
3.23.16 The Government of India releases each year assistance in the form of grants and/or loans to various States and Union Territory Governments for different Central and centrally sponsored schemes in accordance with the pattern specified in the sanctions relating to these schemes. While the entire expenditure on certain schemes is borne by the Central Government, expenditure on others is shared between the Central Government and the State or Union Territory Government, as the case may be. The assistance in respect of State Plan schemes takes the form of Block Grants and loans that are related to the total outlay allotted for the State Plan as a whole by the Planning Commission without linkage with the individual schemes except to the extent of certain earmarked categories like power, major irrigation schemes, elementary education, rural water supply, minimum needs programme and some schemes in the agriculture and allied sectors. Besides the Plan assistance, the State and Union Territory Governments also receive assistance in the form of loans and/or grants from different Ministries of the Government of India for meeting certain items of non-Plan expenditure, such as those intended for mitigating the impact of natural calamities, rehabilitation of refugees, provision of fertilizer loans, loans under the National Loan Scholarship Scheme, etc.
What This Means
The Central Government provides financial assistance to state and UT governments for various plan and non-plan schemes through grants and loans. Some schemes are fully centrally funded, others are shared between Centre and state. State Plan assistance comes as block grants linked to overall Planning Commission allocations, while certain sectors like power, irrigation, and education receive earmarked funding. Non-plan assistance covers items like natural calamity relief and refugee rehabilitation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Central assistance flows as grants and/or loans to states and UTs
- 2Central Plan and Centrally Sponsored schemes have different funding patterns
- 3Some schemes are 100% centrally funded; others have Centre-State cost sharing
- 4State Plan assistance is given as block grants tied to total plan outlay
- 5Certain sectors (power, irrigation, education, rural water) receive earmarked funds
- 6Non-plan assistance covers calamities, refugees, and special programmes
Practical Example
A state government receives Rs 500 crore as block grant for its State Plan, Rs 200 crore for a Centrally Sponsored rural road scheme (60:40 sharing), Rs 100 crore for elementary education (earmarked), and Rs 50 crore as non-plan relief for flood damage. Each of these has different audit requirements — the auditor must verify that funds are used for the intended purpose and that the correct sharing pattern is followed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between Central Plan and Centrally Sponsored schemes?▼
Why does block grant assistance not link to individual schemes?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.