The Finance Ministry of India has placed a cap on the front-loading of expenditure for central sector schemes and sponsored schemes awaiting appraisal under the 16th Finance Commission. Allocations will be limited to the first two quarters of the financial year due to many ministries failing to complete mandatory appraisals by the March 31 deadline. A temporary extension for these schemes is permitted until September 30, 2023, or until new approvals are granted. This extension allows schemes to continue under the same conditions as during the 15th Finance Commission period without expansion. The Department of Expenditure (DoE) has requested ministries to finalize appraisals by September, with a review of allocations based on the continuation or restructuring of schemes. The overall budget for ministries remains unchanged, with the ₹5.48 lakh crore (approximately $66 billion USD) allocated for central sector schemes, constituting about 45% of planned capital expenditure. The rationalization process aims to streamline schemes and redirect funds toward priority areas, ensuring no fiscal impact for the financial year 2026-27.