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P. 100
Annex - VII
Guidelines for flexi-funds within
Centrally Sponsored Schemes
F.No. 55(5)/PF-II/2011
Ministry of Finance
Department of Expenditure
Plan Finance-ll Division
New Delhi,
th
dated 6 September, 2016
Office Memorandum
Subject: Guidelines for Flexi-Funds within Centrally Sponsored Schemes
1. Reference is invited to this Department OM of even no. dated 6"" January, 2014 on the subject mentioned
above. It was stipulated that the Central Ministries should provide 10% of their budget under each CSS as a
flexi-fund, except for schemes which emanate from a legislation or where the whole or a substantial
proportion of the budgetary allocation is flexible.
2. Based on the recommendations of the Sub-Group of Chief Ministers and consultations with stake holders, NITI
Aayog has issued instructions for Rationalization of CSS, vide OM No. O-11013/02/2015-CSS & CMC dated 17"
August, 2016. As per para 6 of the said OM, flexi-funds available in each CSS has been raised from the current
level of 10% to 25% for States, and 30% for UTs, of the overall annual allocation under each scheme.
3. These instructions will be applicable for Centrally Sponsored Schemes, except those which emanate from a
legislation (e.g. MGNREGA), or, schemes where the whole or a substantial proportion of the budgetary
allocation is flexible (e.g. Rashtriya Krishi Vikas Yojna, Border Area Development Program, Shyama Prasad
Mukherjee Rurban Mission etc.). The provisions of this Department's OM No.55(5)/PF-II/2011 dated 6"
January, 2014 ibid are substituted as follows:
Objectives
4. The flexi-fund component within the Centrally Sponsored Schemes can be used to achieve the following
objectives:
(i) To provide flexibility to States to meet local needs and requirements within the overall objective of any
given Scheme at the sub-head level;
(ii) To pilot innovation to improve efficiency within the overall objective of any given Scheme at the sub-
head level;
(iii) To undertake mitigation/ restoration activities in case of natural calamities, or to satisfy local
requirements in areas affected by internal security disturbances.
Fund Allocation and Approval
5. States may, if they so desire, set aside 25% of any Centrally Sponsored Scheme (including the central and
state share for any given scheme in a financial year) as flexi fund to be spent on any sub-scheme or
component or innovation that is in line with the overall aim and objectives of the approved Scheme.
6. The States, who want to avail of the flexi-fund facility, should constitute a State Level Sanctioning Committee
(SLSC) on the lines of RKVY to sanction projects or activities under the flexi-fund component. However,
participation of the concerned Central Ministry would be mandatory in the SLSC before the flexi-fund facility
is invoked under any Centrally Sponsored Scheme.
86
Guidelines for flexi-funds within
Centrally Sponsored Schemes
F.No. 55(5)/PF-II/2011
Ministry of Finance
Department of Expenditure
Plan Finance-ll Division
New Delhi,
th
dated 6 September, 2016
Office Memorandum
Subject: Guidelines for Flexi-Funds within Centrally Sponsored Schemes
1. Reference is invited to this Department OM of even no. dated 6"" January, 2014 on the subject mentioned
above. It was stipulated that the Central Ministries should provide 10% of their budget under each CSS as a
flexi-fund, except for schemes which emanate from a legislation or where the whole or a substantial
proportion of the budgetary allocation is flexible.
2. Based on the recommendations of the Sub-Group of Chief Ministers and consultations with stake holders, NITI
Aayog has issued instructions for Rationalization of CSS, vide OM No. O-11013/02/2015-CSS & CMC dated 17"
August, 2016. As per para 6 of the said OM, flexi-funds available in each CSS has been raised from the current
level of 10% to 25% for States, and 30% for UTs, of the overall annual allocation under each scheme.
3. These instructions will be applicable for Centrally Sponsored Schemes, except those which emanate from a
legislation (e.g. MGNREGA), or, schemes where the whole or a substantial proportion of the budgetary
allocation is flexible (e.g. Rashtriya Krishi Vikas Yojna, Border Area Development Program, Shyama Prasad
Mukherjee Rurban Mission etc.). The provisions of this Department's OM No.55(5)/PF-II/2011 dated 6"
January, 2014 ibid are substituted as follows:
Objectives
4. The flexi-fund component within the Centrally Sponsored Schemes can be used to achieve the following
objectives:
(i) To provide flexibility to States to meet local needs and requirements within the overall objective of any
given Scheme at the sub-head level;
(ii) To pilot innovation to improve efficiency within the overall objective of any given Scheme at the sub-
head level;
(iii) To undertake mitigation/ restoration activities in case of natural calamities, or to satisfy local
requirements in areas affected by internal security disturbances.
Fund Allocation and Approval
5. States may, if they so desire, set aside 25% of any Centrally Sponsored Scheme (including the central and
state share for any given scheme in a financial year) as flexi fund to be spent on any sub-scheme or
component or innovation that is in line with the overall aim and objectives of the approved Scheme.
6. The States, who want to avail of the flexi-fund facility, should constitute a State Level Sanctioning Committee
(SLSC) on the lines of RKVY to sanction projects or activities under the flexi-fund component. However,
participation of the concerned Central Ministry would be mandatory in the SLSC before the flexi-fund facility
is invoked under any Centrally Sponsored Scheme.
86
