Centre mulls over withholding funds for States modifying nomenclature of Central schemes

This politically-motivated move would prevent non-BJP ruled States like Telangana to implement the schemes as per the local needs

Hyderabad: In a significant measure that could have far-reaching implications for States like Telangana, the union government is mulling over possible discontinuation of central funds for States that alter the approved nomenclature and guidelines of flagship central schemes.

If implemented, this politically-motivated move would prevent non-BJP ruled States like Telangana to implement the schemes as per the local needs.

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According to government sources, the Finance Ministry issued a directive to States on capital expenditure in the fiscal year 2023-24 seeking their capex plans. The States are mandated to follow the approved nomenclature of schemes like Prime Minister Aawas Yojana (PMAY), Prime Minister Garib Kalyan Ann Yojana (PMGKAY) and Ayushman Bharat – Health and Wellness Centre.

The States were informed that in this State capital expenditure scheme, there is a pre-condition that only those States which adhere to the original names and guidelines of Central schemes, will be eligible to receive funds. Any attempt to change nomenclature of central schemes would lead to disqualification.

“The move is aimed to deny political mileage to the Opposition parties in States like Telangana where the State government is spending equal or more than the Centre for effective implementation of Central schemes like PMGKAY. Thus, the State government will have to either launch separate parallel schemes or let the Centre take credit for the former’s good work,” said an official in the Finance department.

For instance, only 54.44 lakh cards out of total 89.96 lakh ration cards in Telangana are covered under the Centre’s PMGKAY. The remaining 35.52 lakh cards were issued by the State government. There were a total of 2.83 crore consumers in both schemes.

While the Centre has been supplying only 5 kg rice per head every month, the State government is providing 6 kg rice for each beneficiary per month to all 89.96 lakh ration cards covered under both the Central and the State schemes. The union government did not issue a single new card since Telangana State formation.

The union government’s consideration of this move stems from feedback received from Members of Parliament (MPs) regarding certain States, especially the non-BJP ruled States changing the names and logos of Central schemes. In response, the government is mulling making adherence to approved guidelines, including nomenclature, mandatory for all Centrally-funded schemes.

Though the respective union Ministries did not issue directives for ensuring adherence to the nomenclature and guidelines of the Central schemes so far, it is feared that they may soon follow suit with regard to other flagship schemes.

Thus, the BJP-led Central government appears to be aiming to take political advantage by either claim credit for effective implementation of schemes in all the States and blame the non-BJP ruled State governments for discontinuation of the schemes if they fail to comply.