In the Lok Sabha, Shri S. Venkatesan raises pertinent questions regarding the Education and Health Cess, seeking clarity on its collection, utilization, and government’s policy stance. This article delves into the responses provided by the Ministry of Finance, shedding light on the intricacies of cess management, fiscal allocations, and reserve fund utilization.
a) Cess Collection Trends: The annexure ‘A’ presents a comprehensive overview of the collection of Health and Education Cess over the past six financial years. It outlines the actuals for each fiscal, highlighting the transition from Primary and Secondary Education Cess to the unified Health and Education Cess.
b) Utilization of Cess Proceeds: Annexure ‘B’ elucidates the utilization of cess proceeds, indicating the transfer to dedicated reserve funds such as Prarambhik Shiksha Kosh, Madhyamik & Uchhatar Shiksha Kosh, and Pradhan Mantri Swasthya Suraksha Nidhi. The data showcases the fiscal allocations and reserves operationalized from the last fiscal, reflecting the government’s focus on education and health sectors.
c) Unspent Cess and Reserve Fund Management: Proceeds from the Health and Education Cess are deposited in the Consolidated Fund of India and utilized through dedicated reserve funds. Unspent amounts form part of the closing balance at the end of the financial year, ensuring prudent fiscal management and allocation of resources based on evolving priorities.
d) Government Policy on Cess Management: The government has not assured the creation of a special purpose fund for managing the collected cess. Instead, it has implemented a system where the proceeds are utilized through dedicated reserve funds, aligning with the overarching objective of enhancing education and health infrastructure.
Conclusion: The responses provided by the Ministry of Finance offer valuable insights into the management of Education and Health Cess, emphasizing fiscal transparency, accountability, and targeted allocation of resources. By channeling cess proceeds into dedicated reserve funds, the government demonstrates its commitment to addressing critical needs in education and health sectors. Moving forward, continued vigilance and effective utilization of cess funds are essential to foster inclusive growth and development across the nation.
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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 396
TO BE ANSWERED ON MONDAY THE 5th FEBRUARY, 2024/ MAGHA 16, 1945 (SAKA)
Education and Health Cess
- SHRI S. VENKATESAN:
Will the Minister of FINANCE be pleased to state:
a) The details of amount Education and Health Cess collected during the last six financial years (2018-19 to 2023-24);
b) The details of amount of above cess spent on health and education during the said period;
c) The details of cess which remained unspent and under which head it is kept;
d) Whether the Government has given an assurance to create special purpose Fund for managing this cess collected; and
e) If so, the details and the present status thereof?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) The detail of year-wise Health and Education Cess collected in the last six financial years is annexed at Annexure ‘A’.
(b) The detail of year-wise utilisation of Health and Education Cess in the last six years is annexed at Annexure ‘B’.
(c) The proceeds from the Health and Education Cess collected are deposited in Consolidated Fund of India in terms of the Article 266 of the Constitution of India. The proceeds from aforementioned Cess are utilized through dedicated reserve fund viz. Prarambhik Shiksha Kosh (PSK), Madhyamik & Uchhatar Shiksha Kosh (MUSK) and Pradhan Mantri Swasthya Surakasha Nidhi (PMSSN). Un-utilized/Unspent balance amounts from the Reserve fund during a financial year forms part of its closing balance at the end of the Financial Year.
(d) No.
(e) Does not arise in view of part (d).
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Annexure A
Collection of Health and Education Cess
(Rs in crore)
|
S. No. |
Name of the levy | Actuals 2018-19 | Actuals 2019-20 | Actuals 2020-21 | Actuals 2021-22 | Actuals 2022-23 | RE 2023-24 |
| 1 | Primary Education Cess (abolished on excisable goods) |
97.40 | 81.48 | 61.85 | 15.44 | 3.18 | 0.00 |
| 2 | Secondary & Higher Education Cess (abolished on excisable goods) | 34.24 | 27.97 | 11.42 | 2.50 | 1.45 | 0.00 |
| 3 | Health and Education Cess (introduced from Budget for 2018-19 after merging Primary Education Cess, Secondary and Higher Education Cess |
41177.44 | 39131.10 | 35821.55 | 52732.33 | 61809.29 | 73000.00 |
Source: Department of Economic Affairs
Annexure B
Utilisation of Cess Proceeds (transferred to the Reserve Funds)
(Rs in crore)
|
S. No. |
Name of the levy | Actuals 2018-19 | Actuals 2019-20 | Actuals 2020-21 | Actuals 2021-22 | Actuals 2022-23 | RE 2023-24 |
| 1 | Prarambik Shiksha Kosh | 25227.90 | 26848.35 | 30168.34 | 31788.25 | 38000.00 | 38000.00 |
| 2 | Madhyamik & Uchhatar Shiksha Kosh# | – | 14460.25 | 20561.27 | 25000.00 | 14250.00 | 37833.33 |
| 3 | Pradhan Mantri Swasthya Suraksha Nidhi# | – | – | 20000.00 | 21498.72 | 18339.27 | 9869.87 |
Source: Department of Economic Affairs
# Reserve Funds viz Madhyamik & Uchhatar Shiksha Kosh and Pradhan Mantri Swastya Surakashi Nidhi has been operationalised from the last fiscal. The utilisation from 2019-20 to 2021-22 are as per Revised Estimate (RE) for the respective year(s).
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