From November 1, funds for all central schemes to come via 'Sparsh'
Jul 3, 2025
Synopsis
The Finance Ministry has mandated all departments and states to adopt the 'Sparsh' SNA system for Centrally Sponsored Schemes by October 31st. This initiative aims to streamline fund flow, enhance transparency, and optimize fund utilization, with all CSS funds released solely through this system from November 1st. The move follows a review emphasising accountability and transparency in fund usage.
The Finance Ministry has directed all departments and state governments to adopt the Single Nodal Agency (SNA) 'Sparsh' funds release system for all Centrally Sponsored Schemes (CSS) by October 31 this year. This means funds for all CSS will be released only through this system after November 1. The ministry sent a letter to all the concerned departments, states, and Union Territories (UTs), asking them to take necessary steps to meet the deadline. ET has seen a copy of the letter.
"From November 1, 2025, onwards, all CSS will be implemented through SNA Sparsh in all states and Union Territories (UTs) with legislature." The letter stated all ministries, government departments, state governments, and UTs with legislature must take necessary steps to adhere to the timelines for onboarding schemes on the SNA Sparsh platform. The move aims to streamline fund flow and improve transparency in scheme implementation and optimal utilization of funds. For FY2026, the Centre has budgeted ₹5.41 lakh crore for CSS, which is about 50% of the total capital expenditure outlay for the current financial year.
SNA-Sparsh is a "just-in-time" funds release system introduced by the Reserve Bank of India (RBI) in June 2022 for simplified payment and reconciliation for CSS. The system has helped consolidate unspent balances parked in more than 1.5 million bank accounts of implementing agencies across India into 4,500 bank accounts of the SNA, bringing greater transparency, which has saved the government over ₹11,000 crore since FY2023. Most large flagship schemes are already routed through this system; however, many small schemes are yet to be onboarded.
Among the schemes yet to be included on SNA are: Pradhan Mantri Awas Yojna (Urban 2.0), National Urban Livelihood Mission, SMART-PDS, Mission VATSALYA, Deendayal Antyodaya Yojana-National Urban Livelihood Mission, Ayush Mission, Rashtriya Gram Swaraj Abhiyan, National Mission for a Green India, National Rural Health Mission, irrigation census, E-bus seva, Vibrant Villages Programme, National Mission on Natural Farming, and National Urban Digital Mission (NUDM).
Fresh nudge
On May 29, Cabinet Secretary T.V. Somanathan, in his review meeting of the centrally sponsored schemes, underscored the point once again, officials said. "There was a clear instruction from the Cabinet Secretary (T.V. Somanathan) that all central funds must flow via CSS from April 1, 2026, for greater accountability and transparency of fund usage," a senior official told ET.
The budget for FY2026 contained a new statement that revealed fund balances under SNA accounts with states and UTs regarding select CSS of ₹500 crore and above. "Now this has to be expanded to all small and large schemes we were able to track, and nudge the agencies to utilize the fund," the official said. The Controller General of Accounts (CGA) is already working with the department and states for a smooth transition.
[The Economic Times]
