New Delhi: The government has directed that all new centrally sponsored schemes (CSS) be designed for direct benefit transfer using Aadhaar authentication, with payments routed through the Aadhaar Enabled Payment System to enhance transparency.
In fresh guidelines issued ahead of the union budget for fiscal 2027, the Department of Expenditure (DoE) has directed all ministries and state governments to incorporate digital and cashless mechanisms in new schemes.
This must also be enabled for existing schemes if they continue in the next Finance Commission cycle starting April 1, 2026, according to a communication seen by ET.
"For continued improvement in public services delivery, the government is placing great emphasis on Aadhaar seeding and transfer of direct benefit through Aadhaar authentication," said the letter from the department that comes under the finance ministry.
"The proposals for continuation of schemes should effect necessary modification in the implementation mechanism accordingly and disbursement of the funds should be done through Aadhaar Enabled Payment System to ensure Aadhaar authentication, and not merely Aadhaar seeding in such cases," it added. "The aim is to further improve the delivery of benefits to citizens and to promote the objective of digital and less-cash economy," a senior official told ET.
Ministries proposing new schemes must ensure that no unnecessary establishment or permanent post is created, and no administrative expenses are incurred, the department said. It said a single monitoring body should be established at the central ministerial level. Ministries and departments will have inter-component flexibility to transfer resources for better targeting and effectiveness, however with specific ceilings and approvals in place. This is in line with the Centre's objective of optimal and efficient usage of funds with complete transparency.
The DoE has already directed all departments and state governments to adopt the fund release system of the Sparsh nodal agency for all centrally sponsored schemes from November 1 this year.
In fresh guidelines issued ahead of the union budget for fiscal 2027, the Department of Expenditure (DoE) has directed all ministries and state governments to incorporate digital and cashless mechanisms in new schemes.
This must also be enabled for existing schemes if they continue in the next Finance Commission cycle starting April 1, 2026, according to a communication seen by ET.
"For continued improvement in public services delivery, the government is placing great emphasis on Aadhaar seeding and transfer of direct benefit through Aadhaar authentication," said the letter from the department that comes under the finance ministry.
"The proposals for continuation of schemes should effect necessary modification in the implementation mechanism accordingly and disbursement of the funds should be done through Aadhaar Enabled Payment System to ensure Aadhaar authentication, and not merely Aadhaar seeding in such cases," it added. "The aim is to further improve the delivery of benefits to citizens and to promote the objective of digital and less-cash economy," a senior official told ET.
Ministries proposing new schemes must ensure that no unnecessary establishment or permanent post is created, and no administrative expenses are incurred, the department said. It said a single monitoring body should be established at the central ministerial level. Ministries and departments will have inter-component flexibility to transfer resources for better targeting and effectiveness, however with specific ceilings and approvals in place. This is in line with the Centre's objective of optimal and efficient usage of funds with complete transparency.
The DoE has already directed all departments and state governments to adopt the fund release system of the Sparsh nodal agency for all centrally sponsored schemes from November 1 this year.
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