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