Streamlined System to Enhance Transparency and Efficiency in CSS Funding
In a significant move aimed at enhancing transparency and efficiency in fund disbursement, the central government has announced a redesign of the Centrally Sponsored Schemes (CSS) disbursement system through the E-Kuber platform. This overhaul is expected to revolutionize the process of channeling funds for CSS directly through the E-Kuber platform, paving the way for a more streamlined and transparent procedure. The Finance Department is actively preparing for the implementation of this new system, slated to commence in the fiscal year 2024–2025.
Under this new arrangement, funds previously allocated for CSS will now be deposited directly into the Central Consolidated Fund by the Central Government, and into the State Consolidated Fund by the respective States. The selected departments for the pilot project have been directed to deposit the allocated amounts into their respective Consolidated Funds, marking a significant shift in fund management protocols.
The redesign will initially impact CSS from key departments including Social Welfare, Education, Rural Development, Health, and Environment, Forest, and Climate Change.
To ensure seamless coordination and financial management, all State and Central Government ministries will collaborate by establishing accounts on the Reserve Bank of India’s E-Kuber platform. The integration of all schemes onto the new E-SNAPS (Speedy Transfer Integrated System) system through the Public Financial Management System (PFMS) will further streamline the process.
In addition to depositing funds into the Consolidated Fund, the Centre has issued guidelines for the return of interest earned on CSS funds. States are mandated to verify the interest amounts accrued in bank accounts and reconcile them with the amounts received from the Centre for interest repayment.
By leveraging robust systems like E-SNAPS and digital platforms like E-Kuber, the government aims to optimize resource utilization for the country’s welfare and development while simplifying fund disbursement procedures.
