GoI has introduced a flexi-fund concept within the Centrally Sponsored Schemes (CSS) from the financial year 2014-15, with the following objectives:

  • To provide flexibility to States to meet local needs and requirements within the overall objectives of each programme or scheme;
  • To pilot innovations and improved efficiency within the overall objectives of the scheme in its expected outcomes;
  • To undertake mitigation / restoration activities in case of natural calamities in the sector covered by the CSS.

From 2014-15, 10% of all releases (central and state shares) will be retained as flexi-funds at the WBSWDA level. This will be utilized as per the above objectives. These funds shall not be diverted for any other sector or used for construction / repair of government buildings, purchase of vehicles / furniture, incentives / rewards, or distribution of consumer durables.