The Finance Ministry is working on a plan to drop around 200 central sector schemes as part of its expenditure rationalisation measures.
CNBC-TV18 is given to understand that schemes that have a token budget spend and are not making an impact on the ground will be the ones that will be part of this exercise.
North Block sources also say that the central government will take the states on board while making this move to cut wasteful spending.
The 100 percent government-funded central sector schemes have mushroomed to over 700 with approximately 30 percent of the expenditure budget accounting for this.
While it’s not clear what the estimated savings will be for the Centre through this exercise, sources say the impact is likely to be visible in the next budget.
The tax collections of the central government have not kept pace with the required growth rates, exerting pressure on the government’s finances. However, the government is determined to meet its fiscal deficit target of 3.3 percent for this fiscal.