New Delhi. The central government has changed the funding formula of all state schemes. Under the new formula, now the money of the schemes will go directly to the bank account of the same scheme. State governments will have to spend in the same scheme. State governments will no longer be able to spend money on other items of central schemes.
The central government has now adopted a new formula to prevent the use of funds received by the state governments in other items from the central schemes and the actual benefits of the central schemes and the central schemes could not be completed on time. Because the state governments did not allocate money to them on time. The central government has acted to curb the arbitrariness of the state governments.
Madhya Pradesh government protests
The Madhya Pradesh government has opposed this formula of the central government. The State Government has demanded from the Ministry of Finance that the amount of the schemes should be allocated directly to the State Government instead of putting it in the account of the scheme. This will give the state government the freedom to spend the money according to need. The central government has prepared a new formula to prevent this. There is a confusion among the state government officials about whether the central government will consider the objection of Madhya Pradesh. If this situation continues, the state government may have to face financial crisis in future. Because till now the state government used to use central schemes money in other schemes for many years. Due to which the cost of central schemes used to go up, and could not be completed in time, now it is to see what decision the central government takes in this matter.
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