After the fourteenth finance commission award, the Central Government schemes are divided now into central sector schemes and centrally sponsored schemes (CSS).
Centrally Sponsored Schemes are the schemes by the centre where there is financial participation by both the centre and states. Historically, CSS is the way through which central government helps states to run its Plans financially.
A stipulated percentage of the funding is provided by the States in terms of percentage contribution. The ratio of state participation may vary in 50:50, 60:40, 70:30, 75:25, or 90:10; showing higher contributions by the centre. Various central government ministries directly transfer money to the state governments. Implementation of Centrally Sponsored Scheme is made by State/UT Governments. Centrally Sponsored Schemes are created on areas that are covered under the State List.
Progressive tax
