Recent Trends in Central Transfer to States

Central transfers, which have been declining since 2011-12, increased sharply in 2014-15. This change, both in magnitude and direction, needs to be seen from the perspective of two policy changes which affected the transfer of resources to states.

Transfer of Fund Under CSS

• First, transfer of funds under CSS prior to 2014-15 was effected through the dual mode of a) state budgets; and b) direct transfer to district rural development agencies and independent societies. In this regard, state governments had expressed their concern that direct transfers to the implementing agencies circumvented state budgets, thereby diluting the responsibilities of the ....