Question

According to the notes, what is the funding pattern between the centre and the states for the programme?

• A. 50:50
• B. 25:75
• C. 75:25
• D. 60:40

Answer 1

Answer:

C. 75:25

Funding Pattern for Government Programs: Centre-State Collaboration

• General Principle: Many centrally sponsored schemes operate on a cost-sharing basis between the Union Government and the State Governments.

• Typical Ratios: While specific ratios vary depending on the scheme's priority and nature, a common pattern for many development programs has been a 75:25 share, with the Centre contributing 75% and the States contributing 25%.

• Rationale for Centre's Higher Share: The larger contribution from the Centre often reflects national priorities, the need for uniform development across the country, and the ability of the Union Government to mobilize larger financial resources.

• State's Contribution: The State's share, even if smaller, signifies their ownership and commitment to the program's implementation at the ground level. It also ensures that state-specific needs and contexts are considered.