Overview

• India has launched an exercise for five-yearly appraisal and approval of Centrally Sponsored and Central Sector Schemes covering over 300 flagship programmes due for renewal in 2026.
• A workshop convened by Cabinet Secretary T. V. Somanathan directed secretaries and senior officials to streamline scheme architecture, eliminate overlaps and merge or close outdated initiatives.
• The Department of Expenditure communicated fiscal resource envelopes to ministries to guide funding limits and scope for the next scheme cycle.
• The appraisal exercise precedes the 16th Finance Commission’s recommendations and will align scheme funding and state-central sharing formulas starting April 1, 2026.
• Third-party evaluations by NITI Aayog’s DMEO for CSSs and independent agencies for CSs will underpin scheme assessments and enforce sunset dates.