Lok Sabha Question No. 251 (STARRED), answered on 2022-03-21
Subject: Collection of Cess
Ministry: FINANCE
Asked by: Dayakar Pasunoori, Venkatesh Netha Borlakunta

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA STARRED QUESTION NO. 251

TO BE ANSWERED ON MONDAY THE 21 st  March, 2022

## COLLECTION OF CESS

*251. SHRI PASUNOORI DAYAKAR: SHRI VENKATESH NETHA BORLAKUNTA:

Will the Minister of FINANCE be pleased to state: (a) the details of cess collected on income tax from Telangana since 2013-14, yearwise; (b) the details of distribution of cess so collected on income tax for primary, secondary and higher education and also for health since 2013-14, year-wise and departmentwise; (c) whether there are any dues still pending to be paid to Telangana in any of the said financial years; and (d) if so, the reasons for such pendency along with the steps taken to release the same?

## ANSWER

MINISTER OF FINANCE (Ms. NIRMALA SITHARAMAN)

- (a) to (d)   A statement is laid on the table of the House.

******

## STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED QUESTION NO. 251 FOR ANSWER ON 21 ST  MARCH, 2022

- (a) The details of cess collected on Income Tax from Telangana Since 2013-14, year wise;

'Education  Cess'  @  2%  was  introduced  by  the  Finance  Act,  2004.  By  Finance  Act,  2007,  the government introduced an additional 'Secondary and Higher Education Cess' @ 1%. By Finance Act, 2018, 'Education Cess' and 'Secondary and Higher Education Cess' totalling @ 3% was replaced by 'Health and Education Cess' @ 4% with effect from Assessment Year 19-20 (i.e. Financial Year 201819).

All India Figures of the above Cess Collection from Financial Year 2013-14 to 2021-22(Feb)

| Rs. in Crores           | Rs. in Crores          | Rs. in Crores                       | Rs. in Crores             |
|-------------------------|------------------------|-------------------------------------|---------------------------|
| Name of Cess            | PRIMARY EDUCATION CESS | SECONDARY AND HIGHER EDUCATION CESS | HEALTH AND EDUCATION CESS |
| 2013-14                 | 12040.93               | 6016.28                             | -                         |
| 2014-15                 | 13198.54               | 6594.82                             | -                         |
| 2015-16                 | 13978.34               | 6943.10                             | -                         |
| 2016-17                 | 15927.27               | 7967.44                             | -                         |
| 2017-18                 | 18783.17               | 9390.92                             | -                         |
| 2018-19                 | -                      | -                                   | 40590.57                  |
| 2019-20                 | -                      | -                                   | 38430.21                  |
| 2020-21                 | -                      | -                                   | 35139.07                  |
| 2021-22 (Upto Feb,2022) | -                      | -                                   | 41166.18                  |

(Source: Pr. CCA, CBDT)

State-wise collection data is not maintained for cess on income-tax.

- (b) The details of distribution of cess collected for the Primary, Secondary and Higher education since 2013-14, year wise and Department wise are as under. The details of distribution of cess collected for health are from Year 2020-21.

(Rs. In Crore)

| Year         | Collection of Cess   | Actual utilization of Cess    | Actual utilization of Cess   | Actual utilization of Cess        | Actual utilization of Cess   | Actual Expenditure of Departments   | Actual Expenditure of Departments   | Actual Expenditure of Departments   | Actual Expenditure of Departments   |
|--------------|----------------------|-------------------------------|------------------------------|-----------------------------------|------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
|              |                      | School Education and Literacy | Higher Education             | Deptt. of Health & Family Welfare | Total                        | School Education and Literacy       | Higher Education                    | Deptt. of Health & Family Welfare   | Total                               |
| 2013-14      | 33502.66             | 19988.24                      |                              |                                   | 19988.24                     | 46856.34                            | 24465.17                            | 27145.29                            | 98466.80                            |
| 2014-15      | 36178.49             | 22323.19                      |                              |                                   | 22323.19                     | 45722.41                            | 23152.48                            | 30626.39                            | 99501.28                            |
| 2015-16      | 28023.03             | 19298.16                      |                              |                                   | 19298.16                     | 41799.91                            | 25439.24                            | 33121.42                            | 100360.57                           |
| 2016-17      | 30248.07             | 18818.06                      |                              |                                   | 18818.06                     | 42989.43                            | 29026.33                            | 37671.30                            | 109687.06                           |
| 2017-18      | 31656.07             | 19091.14                      |                              |                                   | 19091.14                     | 46600.44                            | 33614.23                            | 51381.89                            | 131596.56                           |
| 2018-19      | 41309.08             | 28506.54                      | 7935.72                      |                                   | 36442.26                     | 48440.57                            | 31904.27                            | 52953.95                            | 133298.79                           |
| 2019-20      | 39240.54             | 30652.71                      | 9088.75                      |                                   | 39741.46                     | 52520.19                            | 36916.37                            | 62397.08                            | 151833.64                           |
| 2020-21      | 35846.79             | 35735.46                      | 14803.23                     |                                   | 50538.69                     | 51841.64                            | 32377.76                            | 77569.33                            | 161788.73                           |
| 2021- 22(RE) | 47307.70             | 42000.00                      | 18000.00                     | 21498.72                          | 81498.72                     | 51969.95                            | 36031.57                            | 82920.65                            | 170922.17                           |
| 2022- 23(BE) | 53846.16             | 48100.00                      | 14250.00                     | 23750.00                          | 86100.00                     | 63449.37                            | 40828.35                            | 83000.00                            | 187277.72                           |
| Total        | 377158.59            | 284513.50                     | 64077.70                     | 45248.72                          | 393839.92                    | 492190.25                           | 313755.77                           | 538787.30                           | 1344733.32                          |

(Source: Department of Economic Affairs)

Note:

Collection of cess includes cess on income tax and on other taxes as well. For the period 2013-14 to 2020-21, collection of cess is as per Finance Accounts i.e. it gives figures for actual collection of cess. Utilisation  is  assumed  as  per  actual  expenditure  in  the  schemes  to  be  funded.  Though  actual expenditure of the Department of Health & Family Welfare is provided however health and education cess has been levied from 2018-19.

(c) & (d):  The Health and Education Cess is the part of the Central Tax, which is not shareable with States.  However,  Central  Government  releases  share  in  shareable  Central  Taxes/  Duties  to  State Governments as "Tax devolution" in accordance with approved recommendations made by the Finance Commission during its respective award period. Accordingly, Government of India has devolved the share in taxes to all States (including Telangana) from the year 2013-14 till date. There is no pendency as regards tax devolution to States (including Telangana).

********************