5.46 ndian onom
7. So that the corporate sector is able to mobilise Overall, the current investment model of
enough resources for its investment needs the economy is private-led and for this the GoI
in the economy, the governments started proposes to put in place the right kind of financial
to restructure the whole gamut of the system, legal framework, labour laws, etc. The
tax structure, financial structure and its main idea of this model is to ‘unshackle’ the hidden
fiscal policy. Now, as the economy will potential of the private sector. To the extent the
depend more on private participation role of the government is concerned, it will be
for its developmental requirements, limited to being a regulator with an increased tone
the government avoid crowding out of a “facilitator” and a caretaker of the well being
the fund from the economy—a process of the disadvantaged and marginalised sections
of fiscal consolidation starts in. An of the society, so that the face of the economic
increased emphasis comes on the fronts reform remains ‘humane’. In wake of the financial
of ‘targeting’ the subsidies, their better crisis in the western economies, the challenge of
delivery, pension reforms, etc., so that the mobilising resources has become tougher and it
government could de-burden the financial will be really good that the government is able to
system from its fund requirements and devise out a working investment model.
enough finance flows in the system for
the private sector. cEntrAL SEctor SchEMES And
8. To take care of the spending and cEntrALLy SponSorEd SchEMES
investment requirements of the general The exercise of planned development in India has
public, the government is committed to evolved two type of schemes over the time, viz.,—
put in place a cheap interest rate regime, Central Sector Scheme and Centrally Sponsored
right kind of financial environment, Scheme. The names are derived from the pattern
an stable inflation and exchange rate of funding and the modality for implementation.
besides other instruments. Bringing in The Central Sector Schemes are 100 per
‘inclusiveness’ in the growth process is cent funded by the Union Government and
now the declared policy stance of the implemented by the Central Government
government. machinery. These schemes are mainly formulated
9. Once the new government came to power on subjects from the Union List. In addition, the
by mid-2014, we find a renewed synergy Central ministries also implement some schemes
in creating conducive environment for the directly in the states/UTs, which are called
private sector so that the economy could Central Sector Schemes, but resources under these
be able to attract enough investible fund schemes are not generally transferred to states.
to further the process of development. As per the Union Budget 2016–17, the
The government looks committed to existing 1,500 such schemes have been restructured
the cause of improving the ‘ease of doing into 300 by the Gol. This will prevent overlapping
business’ in the country. Aimed to this we of expenditure and help in better monitoring and
find the government busy in putting in evaluation.
place the ‘right’ kind of land acquisition Under the Centrally Sponsored Schemes
law, labour law, companies law, tax laws, (CSSs) a certain percentage of the funding is
digitalisation of government processes, borne by the Centre and the states in fixed ratios
etc. and the implementation is done by the state