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Union Government issues fresh guidelines for flexi-fund for CSS

Union Government on 9 September 2016 issued fresh flexi-fund guidelines for Centrally Sponsored Schemes (CSS). 
•    The guidelines would give more freedom to states in spending money under the CSS to meet local developmental requirements.
•    Under the new norms, flexi-funds in each CSS have been increased from the current 10 percent to 25 percent for states and 30 percent for Union Territories.
•    Now, the states can use the fund to undertake mitigation or restoration activities in case of natural calamities, or to satisfy local requirements in areas affected by internal security disturbances.
•    The guidelines said that state governments will have to constitute a state-level sanctioning committee to avail of the flexi-fund facility. 
•    The flexi-fund facility is not for CSS which emanate from legislation, like MNREGA. 
•    Based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of Centrally Sponsored Schemes.

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