Government has issued fresh flexi-fund guidelines that will give more freedom to states in spending money under the Centrally Sponsored Schemes (CSS) to meet local developmental requirements.

• Under the new norms, flexi-funds in each CSS has been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories. Finance Ministry said, 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 a legislation, like MNREGA. The Ministry said, 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.