{"id":5575,"date":"2026-07-23T12:26:25","date_gmt":"2026-07-23T12:26:25","guid":{"rendered":"https:\/\/enterprisehub.org.in\/?page_id=5575"},"modified":"2026-07-27T09:28:30","modified_gmt":"2026-07-27T09:28:30","slug":"public-investment","status":"publish","type":"page","link":"https:\/\/enterprisehub.org.in\/index.php\/public-investment\/","title":{"rendered":"Public Investment"},"content":{"rendered":"\t\t
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Public Investment<\/h2><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Public investment refers to the state’s investment in particular assets, whether through national or local governments, and\/or publicly owned businesses or industries. In India, central and state governments undertake public investment through schemes\/programs and projects.<\/p>

To refer to the list of sectoral central and state governments schemes, Click Here<\/strong><\/a><\/p>

The Union Budget 2016-17 had announced the elimination of the distinction between plans and non\u2013plans at the conclusion of the Twelfth Five Year Plan. With this, the Central Government came up with a plan\/non-plan neutral appraisal and approval mechanism for funding under its schemes and projects. It has put forth the following appraisal and approval system in place.<\/p><\/div><\/div><\/div><\/div>

\u00a0<\/div><\/div><\/div><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Schemes are program-based cost centers through which the Ministries and Departments spend their budgetary and extra-budgetary resources for delivery of public goods and services to the citizens. These are of two types:<\/p>

  1. Central Sector Schemes:\u00a0<\/strong>Central Sector Schemes are implemented by the Central Ministries\/Departments through their designated implementation agencies and funds are routed through the functional heads relevant for the sector.<\/li>
  2. Centrally Sponsored Schemes:\u00a0<\/strong>Centrally Sponsored Schemes are carried out in accordance with the areas of the National Development Agenda that have been determined by the Committee of Chief Ministers, which was established by NITI Aayog. Both central and state components may be present. The central sector schemes in para a) above are examples of functional heads that implement central components, which are entirely funded by the central government, while the state components are routed through the intergovernmental transfer heads 3601\/3602. According to the fund-sharing structure approved for the purpose, the Central and State Governments split the cost of State Components.<\/li><\/ol><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t
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    The term “projects” is best understood in its everyday context. They entail a one-time investment that results in the formation of capital assets, which may produce financial, economic, or both types of returns. Projects can be accepted as stand-alone projects or as individual projects within an approved scheme envelope. They may be carried out using budgetary, extra-budgetary, or a combination of the two resources.<\/p><\/div><\/div><\/div><\/div><\/div><\/section><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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    The biggest impediment to successful implementation at the implementation stage, including time and cost overruns and a string of revised cost estimates, is the quality of the scheme or project formulation. Additional time and effort put forth at the scheme\/project formulation stage can not only conserve valuable resources but also increase the overall impact, resulting in outcomes that are of higher quality.<\/p>