Lok Sabha Question No. 1168 (UNSTARRED), answered on 2018-02-09
Subject: Education Cess
Ministry: FINANCE
Asked by: KINJARAPU RAM MOHAN NAIDU

Government of India Ministry of Finance Department of Expenditure

## LOK SABHA UNSTARRED QUESTION NO.1168

## TO BE ANSWERED ON FRIDAY, THE 9 th February, 2018 Magha 20, 1939 (Saka)

## EDUCATION CESS

## 1168. SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of FINANCE be pleased to state :

- (a)  The  details  of  the  expenditure  of  education  cess  since  it  is  being  levied  by  Government, State/UT-wise;
- (b)  Whether the entire amount of fund collected as education cess is spent  on education related programmes and activities, if so, the details thereof and if not, the reasons therefor;
- (c)  Whether  the  fund  collected  under  education  cess  has  not  been  fully  utilized,  if  so,  the  details thereof and the reasons therefor; and
- (d)  Whether the education cess has contributed in a positive manner to any of its objectives, if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR FINANCE

## (SHRI P. RADHAKRISHNAN)

For  (a)  to  (c):  The  Education  Cess  comprises  of  2%  Primary  Education  Cess  and  1%  Secondary  & Higher Education Cess. The Primary Education Cess is credited to Prarambhik Shiksha Kosh (PSK) and is used to meet part of expenditure on Sarva Shiksha Abhiyan (SSA) & part on Mid Day Meal (MDM) Scheme.  The proceeds of Secondary and Higher Education Cess (SHEC) is credited to a single non- lapsable pool known as "Madhyamik and Uchchtar Shiksha Kosh" (MUSK) that has been created in the year 2017. Primary Education Cess collected from the period 2004-05 to 2016-17 is Rs.1,93,828 crores. The  utilisation  from  PSK  towards  SSA  during  the  above  mentioned  period  is  Rs.1,20,239  crores  and towards  MDM  is  Rs.58,503  crores.  Collection  of  Secondary  &  Higher  Education  Cess  from  the  period 2004-05 to 2016-17 is Rs.83,489 crores. The proceeds of the Secondary & Higher Education Cess are considered to have financed part of the expenditure of higher education through the demands for grants of the M/o Human Resource Development (HRD).

For  (d):  Yes  Sir,  Education  Cess  has  contributed  in  a  positive  manner  to  its  objectives.  While  the implementation of SSA programme has resulted in near universal access at primary level, the Mid Day Meal programme has benefitted in providing hot-cooked meals to 9.78 crore children studying in 11.40 lakh institutions during 2016-17.

Government of India Ministry of Finance Department of Expenditure

## LOK SABHA UNSTARRED QUESTION NO.1168 TO BE ANSWERED ON TUESDAY, THE 9 th February, 2018 Magha 20, 1939 (Saka)

EDUCATION CESS

1168 .   SHRI RAM MOHAN NAIDU KINJARAPU:

| QUESTION   | ANSWER   |
|------------|----------|

Will the Minister of FINANCE be pleased to state:

- a) The detail of the expenditure of Education Cess since it is being levied by Government, State/UT wise;
- b) Whether the entire amount of fund collected as Education Cess is spent  on education related programmes and activities, if so, the details thereof and if not, the reasons therefore;
- c)  Whether the fund collected under Education Cess has not been fully utilized, if so, the details thereof and the reasons therefore;

## MINISTER OF STATE FOR FINANCE (SHRI JAYANT SINHA)

For  (a)  to  (c)  The  Ministry  of  Finance  is  the Nodal  Ministry  for  collection  of  Education  Cess. Regarding Question (a) to (c) it is to state that the  Education  Cess  comprises  of  2%  Primary Education  Cess  and  1%  Secondary  &  Higher Education Cess. The Primary Education Cess is credited to Prarambhik Shiksh Kosh (PSK) and is used  to  meet  part  of  expenditure  on  Sarva Shiksha Abhiyan (SSA) & part on Mid Day Meal (MDM)  Scheme.    The  proceeds  of  Secondary and  Higher  Education  Cess  (SHEC)  is  credited to a single non-lapsable pool known as "Madhyamik and Uchchtar Shiksha Kosh" (MUSK) that  has  been  created  in  the  year  2017.  Also details of Primary Education Cess collected from the  period  2004-05  to  2016-17  as  intimated  by CBDT  &  CBEC  is  Rs.1,93,828.  The  utilisation from PSK towards SSA during the above mentioned  period  is  Rs.1,20,239  and  towards MDM  is  Rs.58,503.  Collection  of  Secondary  & Higher Education Cess as intimated by CBDT & CBEC  from  the  period  2004-05  to  2016-17  is Rs.83,489  and  utilisation  from  MUSK  for  the

- d) Whether the Education Cess has contributed in a positive manner to any of its objectives, if so, the details thereof?

above period is 'NIL'

For (d) 'Yes', Education Cess has contributed in a  positive  manner  to  its  objectives.  While  the implementation  of  SSA  programme  has  resulted in  near  universal  access  at  primary  level,  the Mid  Day  Meal  programme  has  benefitted  in providing hot-cooked meals to 9.78 crore children studying in 11.40 lakh institutions during 2016-17.