New Delhi : The Union government may stop central funds to those states that change approved nomenclature and guidelines of flagship central schemes such as Prime Minister Aawas Yojana (PMAY), Prime Minister Garib Kalyan Ann Yojana (PMGKAY) and Ayushman Bharat – Health and Wellness Centre, two officials with direct knowledge of the matter said requesting anonymity.
While the finance ministry has already circulated a directive in this regard to states for matters pertaining to the capital expenditure (capex) in 2023-24, ministries administering other flagship schemes may soon follow suit, they said requesting anonymity.
A spokesperson in the Union finance ministry confirmed that such a communication was indeed issued. “In this state capital expenditure scheme, it is the pre-condition that only if there is no violation of the nomenclature, names of the central schemes, only then they are eligible [for the fund],” he said.
The Centre has already sought capex plans of states in advance for 2023-24 on first week of February to front-load capital expenditure with a caveat that any attempt to change nomenclature of central schemes would lead to disqualification, he added.
The Union Budget for 2023-24 recognised capital investment “as driver of growth and jobs” and raised the outlay by 33% to ₹10 lakh crore. “The direct capital investment by the Centre is complemented by the provision made for creation of capital assets through Grants-in-Aid to States. The ‘Effective Capital Expenditure’ of the Centre is budgeted at ₹13.7 lakh crore, which will be 4.5 per cent of GDP,” finance minister Nirmala Sitharaman said in her budget speech on February 1.
States are also expected to adhere to the approved nomenclature of other schemes such as PMAY, PMGKAY and Ayushman Bharat, but it is up to the respective administrative ministries to issue directives to states, the finance ministry spokesperson said . Email queries sent to ministries of health and family welfare, and consumer affairs, food and public distribution did not elicit a response..
There have been some instances of the ministries warning state governments on this front.Now, the Union government is considering making it mandatory for states to adhere to approved guidelines for all centrally-funded schemes, including nomenclature as they are passed by the Parliament, a second official said. The decision has been taken after feedback from several Members of Parliament (MPs) that some of the states are changing names and logos of central schemes, he added.
The matter was also raised during a discussion on the Budget on February 10 where some members expressed concern over West Bengal and Andhra Pradesh changing names of ‘Pradhan Mantri Awas Yojana’ and ‘Ayushman Bharat – Health and Wellness Centre to ‘Bangla Awas Yojana’ and ‘Mohalla Clinic’, respectively, he said.
“These are scheme-based grants and any change in guidelines or nomenclature by any state would amount to their discontinuance. States should adhere to scheme guidelines for uninterrupted flow of funds,” this person added.
While replying to the Budget discussion in the Lok Sabha on February 10, Sitharaman spoke about the state’s attempt to change the name of PMAY (Rural). “Again, this is about Grameen Awas Yojana. Many complaints have been received from MPs and MLAs about irregularities in the scheme’s implementation. The Department of Rural Development has constituted a national-level monitor who has submitted a report on irregularities, including the change of name and logo of the scheme.”
Citing similar instance related to central scheme — Ayushman Bharat, Health and Wellness Centre –on February 10 in the lower house, health minister Mansukh Mandaviya said there are 1,54,000 such centres across the country and the scheme involves 60% funding by the centre and 40% by the state. Despite signing a memorandum of understanding (MoU) with centre, some states have renamed it, which is violation of the “contract” and amounts to closure of the ‘Health and Wellness Centre’ scheme, which would lead to stoppage of the grant, he warned.