Central transfers of funds for development of states

Ministry of Finance

The Union Government provides funds to the State Governments under the Centrally Sponsored Schemes (CSS), Central Sector Schemes (CS), Finance Commission grants (FC grants) and Other Grants /Loans/Transfers as per the guidelines of the respective Scheme within the availability of Gross Budgetary Support with the Union Government. This was stated by Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in the Lok Sabha today.

The Minister gave details of central transfers to States as per the Union Budget 2020-21(RE) and 2021-22 (BE) as under:-


(Rs in crore)

S. No. Nature of Central Transfers to States 2020-21 (RE) 2021-22 (BE)
Total Transfers excluding Tax Devolution 713014.40 674253.42
  Of which    
Centrally Sponsored Schemes 315238.00 318857.20
Central Sector Schemes 42374.08 43016.21
Finance Commission Transfers 182352.43 220843.00


The concerned State Governments and Central Ministries/Departments review and monitor implementation of the schemes as per the scheme/programme specific guidelines to ensure effective utilization of funds including expenditure incurred, the Minister said.

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