Lok Sabha Question No. 3290 (UNSTARRED), answered on 2024-12-16
Subject: Levy and Utilisation of Cess
Ministry: FINANCE
Asked by: Shri Naveen Jindal

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA

## UNSTARRED QUESTION NO. 3290

TO BE ANSWERED ON MONDAY, DECEMBER 16, 2024/ AGRAHAYANA 25, 1946 (SAKA)

## LEVY AND UTILISATION OF CESS

## 3290. SHRI NAVEEN JINDAL:

Will the Minister of FINANCE be pleased to state:

- (a) the various types of cess being levied by the Government on different commodities and services, the purpose of each of the cess being levied and the system of disbursal of funds thus collected;
- (b) the amount of funds collected against each of the cess during the last five years, cess and year-wise;
- (c) the amount of funds disbursed to each of the designated agency/ body during the last five last  years, cess and year-wise; and
- (d) the amount left undisbursed and detailed reasons therefor in case of any delays in disbursal of funds to any of the agency/body during the last five years, cess and year-wise?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE ( SHRI PANKAJ CHAUDHARY)

(a)  and  (b)  :  The  list  of  major  cesses  being  levied  including  details  of  year-wise  collections  therein  is  at Annexure 'A'.

The purpose of these cesses,  inter- alia, includes:

- i. to finance education, health, and social security
- ii. to finance the health infrastructure, agriculture infrastructure, and other development expenditure,
- iii. National Disaster Response Fund. and
- iv. to provide for compensation  to  the States for the loss of revenue  arising on  account of implementation of the goods and services tax.
5. (c)  and (d):  Details of expenditure being made in various Schemes through major Reserve Funds during the last 5 years are enclosed at Annexure 'B'

The proceeds from the cesses collected are deposited in Consolidated Fund of India in terms of the Article 266  of  the  Constitution  of  India.  The  proceeds,  being  the  resources  of  the  Union  Government,  are predominantly utilized towards various schemes of the Government of India through various Reserve Funds. Taking  into  account  the  receipts  and  utilization  of  different  cesses  in  the  previous  years,  the  additional transfer to reserve funds is also made towards making good the shortfall, if any, from Union Government's own resources and borrowings.

*****

## Statement showing details of  Major Cesses accounted during last 5 years

## (Rs. In Crore)

| Sl. No.                  | Name of the levy and receipt heads                              | tax                   | Actuals 2018-19   | Actuals 2019-20   | Actuals 2020-21   | Actuals 2021-22   | Actuals 2022-23   | Revised 2023-24   | Budget 2024-25   |
|--------------------------|-----------------------------------------------------------------|-----------------------|-------------------|-------------------|-------------------|-------------------|-------------------|-------------------|------------------|
| CESSES IN OPERATION:     |                                                                 |                       |                   |                   |                   |                   |                   |                   |                  |
| 1                        | AGRICULTURE INFRASTRUCTURE &DEVELOPMENT CESS                    |                       | ...               |                   | ...               |                   |                   |                   |                  |
|                          | CESS ON CRUDE                                                   |                       |                   | ...               |                   | 76950.68          | 74142.03          | 79910.00          | 83850.00         |
| 2                        | OIL                                                             |                       | 17814.23          | 14062.49          | 10894.44          | 19353.84          | 21497.14          | 18500.00          | 19410.00         |
| 3                        | CESSES ON EXPORTS                                               |                       | 1690.23           | 5759.14           | 9214.64           | 1457.10           | 852.44            | 1560.00           | 2000.00          |
| 4                        | GOODS& SERVICES TAX COMPENSATION CESS                           |                       | 95080.71          | 95553.09          | 85191.91          | 104768.66         | 125862.41         | 145000.00         | 151009.00        |
| 5                        | HEALTH CESS                                                     |                       | ...               | ...               | -13.52            | 31.02             | 24.01             | 30.00             | 30.00            |
| 6                        | HEALTH& EDUCATION CESS                                          |                       | 41177.44          | 39131.10          | 35821.55          | 52732.33          | 61809.29          | 73000.00          | 83000.00         |
| 7                        | NATIONAL CALAMITY CONTINGENT DUTY                               |                       | 1797.80           | 2380.44           | 5098.81           | 6138.30           | 7168.30           | 8800.00           | 9460.00          |
| 8                        | ROAD AND INFRASTRUCTURE CESS*                                   |                       | 110847.16         | 122424.32         | 235782.55         | 195986.96         | 59234.95          | 44300.00          | 46530.00         |
|                          |                                                                 | Grand Total (1 to 8)  | 268407.57         | 279310.58         | 381990.38         | 457418.89         | 350590.57         | 371100.00         | 395289.00        |
| CESSES NOT IN OPERATION: |                                                                 |                       |                   |                   |                   |                   |                   |                   |                  |
| 9                        | PRIMARY EDUCATION CESS                                          |                       | 97.40             | 81.48             | 61.85             | 15.44             | 3.18              | ...               | ...              |
| 10                       | SECONDARY& HIGHER EDUCATION CESS                                |                       | 34.24             | 27.97             | 11.42             | 2.50              | 1.45              | ...               | ...              |
| 11                       | CLEAN ENERGY CESS                                               |                       | 4.88              | 24.56             | 0.01              | 23.86             | 19.75             | ...               | ...              |
| 12                       | KRISH KALYAN CESS                                               |                       | 168.89            | 40.12             | 10.61             | 7.24              | 6.02              | ...               | ...              |
| 13                       | SWACHHBHARAT CESS                                               |                       | 216.40            | 46.63             | 17.34             | 9.63              | 7.98              | ...               | ...              |
| 14                       | INFRASTRUCTURE CESS                                             |                       | 6.36              | 0.94              | -0.07             | ...               | ...               | ...               | ...              |
| 15                       | OTHER CESSES COLLECTED UNDER UNION EXCISE DUTIES                |                       | -7.84             | 21.79             | 0.74              | -0.02             | 0.41              | ...               | ...              |
| 16                       | CESSES UNDER OTHER TAXES AND DUTIES ON COMMODITIES AND SERVICES |                       | 52.10             | 25.84             | 23.59             | 19.20             | -141.83           | ...               | ...              |
| B.                       | B.                                                              | Grand Total (9 to 16) | 572.43            | 269.33            | 125.49            | 77.85             | -103.04           | ...               | ...              |
| Grand Total (A+B)        | Grand Total (A+B)                                               |                       | 268980.00         | 279579.91         | 382115.87         | 457496.74         | 350487.53         | 371100.00         | 395289.00        |

## Utilization  of Cess proceeds through Major Reserve funds (Cess transferd to the Reserve Funds)

( ₹ crore )

| Sl. No.   | Name of the Fund                                                      | 2018-19   | 2019-20   | 2020-21   | 2021-22   | 2022-23   |   2023-24 (RE) |   2024-25 BE |
|-----------|-----------------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|----------------|--------------|
| 1         | Agriculture Infrastructure and Development Fund*                      | ...       | ...       | ...       | ...       | ...       |      129535    |     116309   |
| 2         | Prarambik Shiksha Kosh                                                | 25227.90  | 26848.35  | 30168.34  | 31788.25  | 38000.00  |       38000    |      43000   |
| 3         | Madhyamik & Uchhatar Shiksha Kosh#                                    | ...       | 14460.25  | 20561.27  | 25000.00  | 14250.00  |       37833.3  |      29763.1 |
| 4         | GST Compensation Fund                                                 | 54275.00  | 153910.29 | 106317.00 | 110795.47 | 163506.29 |      145000    |     150000   |
| 5         | Central Road and Infrastructure Fund                                  | 62879.64  | 90252.40  | 182363.47 | 251738.18 | 239646.25 |       44300    |      37500   |
| 6         | National Disaster Response Fund/ National Calamity Contingency Fund** | 2500.00   | 2480.00   | 5820.00   | 6134.60   | 8000.49   |        8800    |       9460   |
| 7         | Pradhan Mantri Swasthya Suraksha Nidhi#                               | ...       | ...       | 20000.00  | 21498.72  | 18339.27  |        9869.87 |      14757.7 |
|           | Grand Total                                                           | 144882.54 | 287951.29 | 365230.08 | 446955.22 | 481742.30 |      413338    |     400790   |