Lok Sabha Question No. 2360 (UNSTARRED), answered on 2025-12-15
Subject: Increase in Cess and Surcharge Collections
Ministry: FINANCE
Asked by: Ms Sayani Ghosh

## Government of India Ministry of Finance Department of Revenue

## LOK SABHA UNSTARRED QUESTION NO. 2360

TO BE ANSWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA)

## INCREASE IN CESS AND SURCHARGE COLLECTIONS

2360. MS SAYANI GHOSH:

Will the Minister of FINANCE be please to state:

- (a) whether it is a fact that the collection from various cesses and surcharges have increased substantially since 2014, if so, the details of total cess and surcharge collections and their percentage share in the total tax pool, year-wise;
- (b) whether it is true that cesses and surcharges being outside the divisible pool, have reduced the tax share devolved to States, if so, whether the Government has assessed its fiscal impact on State finances and if so, the details thereof;
- (c) the total amount of cess and surcharge collected under each category but not spent along with the reasons for such large unspent balance; and
- (d) whether the Government proposes to release/share a portion of the unspent cess and surcharge funds with the States or bring these levies back into the divisible pool to ensure equitable fiscal distribution and if so, the details thereof?

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

- (a) : Year-wise detail of Collections of major cesses and surcharges (in operation) during FY 2014-15 to FY 2025-26 and their share as a percentage of Gross Tax Revenue is enclosed as Annexure 'A'.
- (b):  Tax  shares  are  devolved  to  the  States  based  on  recommendation  of  successive  Finance Commissions. As a percentage of divisible Pool, the states share devolved to States increased from 32% in 2014-15 to 41% in 2025-26.

Year-wise detail of devolutions made to the States since FY 2014-15 is enclosed as Annexure 'B'.

- (c): Proceeds from the cesses and surcharges are collected and deposited in Consolidated Fund of India in terms of Articles 266 of the Constitution of India. The balances in the Consolidated Fund of India close every Financial Year, this implies that there are no unspent balances of cesses in the Consolidated Fund of India.

The details  of  the  collections  and  utilizations  under  major  cesses  since  FY  2014-15  is  enclosed  as Annexure 'C'.

- (d): Taxes levied and distributed between the Union and the States are governed by Article 270(1) of the Constitution of India. This Article exempts cesses and surcharges from distribution between the Union and the  States  and  hence  do  not  form  part  of  the  divisible  Pool.  In  the  true  spirit  of  fiscal federalism, Government of India during this financial Year has till date released 2 additional instalments of tax devolution (instead of 9 instalments Government of India has released 11 instalments till date).

*****

## Statement showing details of Cesses & Surcharges levied and collected as part of principal taxes

| Sr No                                                      | Name of the levy and tax receipt heads                     | 2014-15              | 2015-16              | 2016-17              | 2017-18              | 2018-19              | 2019-20              | 2020-21              | 2021-22              | 2022-23              | 2023-24              | RE 2024-25           | BE 2025-26           |
|------------------------------------------------------------|------------------------------------------------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|----------------------|
| CESSES IN OPERATION:                                       | CESSES IN OPERATION:                                       | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: | CESSES IN OPERATION: |
| 1                                                          | AGRICULTURE INFRASTRUCTURE & DEVELOPMENT CESS              | ...                  | ...                  | ...                  | ...                  | ...                  | ...                  | ...                  | 76950.68             | 74142.03             | 80923.60             | 75180.00             | 80030.00             |
| 2                                                          | CESS ONCRUDE OIL                                           | 14655.05             | 14310.69             | 12618.31             | 13579.21             | 17814.23             | 14062.49             | 10894.44             | 19353.84             | 21497.14             | 18803.41             | 17810.00             | 19330.00             |
| 3                                                          | CESSES ON EXPORTS                                          | 1179.06              | 122.39               | 177.21               | 384.56               | 1690.23              | 5759.14              | 9214.64              | 1457.10              | 852.44               | -3.19                | 10.00                | 11.00                |
| 4                                                          | HEALTH CESS                                                | ...                  | ...                  | ...                  | ...                  | ...                  | ...                  | -13.52               | 31.02                | 24.01                | 22.90                | 30.00                | 35.00                |
| 5                                                          | HEALTH &EDUCATION CESS                                     | ...                  | ...                  | ...                  | ...                  | 41177.44             | 39131.10             | 35821.55             | 52732.33             | 61809.29             | 71156.96             | 85300.00             | 94000.00             |
| 6                                                          | NATIONAL CALAMITY CONTINGENT DUTY                          | 3732.55              | 5172.93              | 6426.20              | 2938.44              | 1797.80              | 2380.44              | 5098.81              | 6138.30              | 7168.30              | 7812.25              | 9610.00              | 10380.00             |
| 7                                                          | ROAD AND INFRASTRUCTURE CESS*                              | 25121.95             | 69539.98             | 72399.53             | 83132.29             | 110847.16            | 122424.32            | 235782.55            | 195986.96            | 59234.95             | 44552.49             | 45250.00             | 47420.00             |
| A                                                          | Total (1 to 7)                                             | 44688.61             | 89145.99             | 91621.25             | 100034.50            | 173326.86            | 183757.49            | 296798.47            | 352650.23            | 224728.16            | 223268.42            | 233190.00            | 251206.00            |
| % share of cess [ without GST Compensation Cess] w.r.t GTR | % share of cess [ without GST Compensation Cess] w.r.t GTR | 3.6%                 | 6.1%                 | 5.3%                 | 5.2%                 | 8.3%                 | 9.1%                 | 14.6%                | 13.0%                | 7.4%                 | 6.4%                 | 6.1%                 | 5.9%                 |
| B                                                          | GOODS &SERVICES TAX COMPENSATION CESS                      | ...                  | ...                  | ...                  | 62611.59             | 95080.71             | 95553.09             | 85191.91             | 104768.66            | 125862.41            | 141436.16            | 153440.00            | 167110.00            |
| C                                                          | Total (A+B)                                                | 44688.61             | 89145.99             | 91621.25             | 162646.09            | 268407.57            | 279310.58            | 381990.38            | 457418.89            | 350590.57            | 364704.58            | 386630.00            | 418316.00            |
| % share of GST Compensation Cess w.r.t GTR                 | % share of GST Compensation Cess w.r.t GTR                 | -                    | -                    | -                    | 3.3%                 | 4.6%                 | 4.8%                 | 4.2%                 | 3.9%                 | 4.1%                 | 4.1%                 | 4.0%                 | 3.9%                 |
| SURCHARGES:                                                | SURCHARGES:                                                | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          | SURCHARGES:          |
| 1                                                          | Corporation Tax                                            | 14302.20             | 17754.06             | 20109.73             | 21439.48             | 25448.59             | 19053.92             | 14078.57             | 15890.00             | 55103.79             | 60373.34             | 60000.00             | 70000.00             |
| 2                                                          | Taxes on Income other than Corporation Tax                 | 1400.10              | 1565.16              | 2298.97              | 3211.77              | 4291.69              | 5236.92              | 5537.78              | 7922.88              | 53914.24             | 54793.80             | 76000.00             | 85000.00             |
| 3                                                          | Fringe Benefit Tax                                         | 0.04                 | 0.03                 | 0.01                 | ...                  | 0.01                 | ...                  | 0.37                 | ...                  | ...                  | ...                  | ...                  | ...                  |
| 4                                                          | Social Welfare Surcharge under Customs                     | ...                  | ...                  | ...                  | 1221.88              | 8871.19              | 8796.12              | 13447.39             | 16945.06             | 16178.79             | 16273.41             | 17250.00             | 17500.00             |
| D                                                          | Total (1 to 4)                                             | 15702.34             | 19319.25             | 22408.71             | 25873.13             | 38611.48             | 33086.96             | 33064.11             | 40757.94             | 125196.82            | 131440.55            | 153250.00            | 172500.00            |
| % share of surcharge w.r.t GTR                             | % share of surcharge w.r.t GTR                             | 1.3%                 | 1.3%                 | 1.3%                 | 1.3%                 | 1.9%                 | 1.6%                 | 1.6%                 | 1.5%                 | 4.1%                 | 3.8%                 | 4.0%                 | 4.0%                 |

*Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'.

( ₹ crore )

## Year-wise details of devoluƟon of States' Share of Union Taxes and DuƟes since FY 2014-15.

| Financial Year   |   (₹ Lakh crore) |
|------------------|------------------|
| 2014-15          |             3.38 |
| 2015-16          |             5.06 |
| 2016-17          |             6.08 |
| 2017-18          |             6.73 |
| 2018-19          |             7.61 |
| 2019-20          |             6.51 |
| 2020-21          |             5.95 |
| 2021-22          |             8.83 |
| 2022-23          |             9.48 |
| 2023-24          |            11.29 |
| 2024-25(RE)      |            12.87 |
| 2025-26(BE)      |            14.22 |

## Collections and Utilizations under major Cesses'

## 1. Prarambhik  Shiksha  Kosh  (PSK),  Madhyamik  and  Uchchatar  Shiksha  Kosh  (MUSK)  and  Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN)

(₹crore)

| Year         |   Collection (Health and Education Cess) (A) |   (Transfer/ Utilisation) (B) |   Balance - (B) |
|--------------|----------------------------------------------|-------------------------------|-----------------|
| 2014-15      |                                      36178.5 |                       22323.2 |        13855.3  |
| 2015-16      |                                      28023   |                       19298.2 |         8724.87 |
| 2016-17      |                                      30248.1 |                       19732.5 |        10515.6  |
| 2017-18      |                                      31656.1 |                       19139.8 |        12516.3  |
| 2018-19      |                                      41309.1 |                       37836.9 |         3472.2  |
| 2019-20      |                                      39240.6 |                       41308.4 |        -2067.85 |
| 2020-21      |                                      35894.8 |                       70735.5 |       -34840.6  |
| 2021-22      |                                      52750.3 |                       78287   |       -25536.7  |
| 2022-23      |                                      61813.9 |                       70589.3 |        -8775.35 |
| 2023-24      |                                      71158.6 |                       80010   |        -8851.36 |
| 2024-25 (RE) |                                      85300   |                       87198.7 |        -1898.73 |
| 2025-26 (BE) |                                      94000   |                      103000   |        -9000    |
| Total        |                                     607573   |                      649459   |       -41886.3  |

## 2. CENTRAL ROAD AND INFRASTRUCTURE FUND

| Year         |   Collection* (Road and Infrastructure Cess) |   (Transfer/ Utilisation) (B) |   (₹crore) Balance (A)-(B) |
|--------------|----------------------------------------------|-------------------------------|----------------------------|
| 2014-15      |                              25122           |               25777.9         |                    -655.99 |
| 2015-16      |                              69540           |               43175.1         |                   26364.9  |
| 2016-17      |                              72399.5         |               51853.6         |                   20546    |
| 2017-18      |                              83132.3         |               58521.6         |                   24610.7  |
| 2018-19      |                             110847           |               62879.6         |                   47967.5  |
| 2019-20      |                             122424           |               90252.4         |                   32171.9  |
| 2020-21      |                             235783           |              182363           |                   53419.1  |
| 2021-22      |                             195987           |              251738           |                  -55751.2  |
| 2022-23      |                              59234.9         |              239646           |                 -180411    |
| 2023-24      |                              44552.5         |               47777.7         |                   -3225.17 |
| 2024-25 (RE) |                              45250           |               39777.9         |                    5472.1  |
| 2025-26 (BE) |                              47420           |               41000           |                    6420    |
| Total        |                                  1.11169e+06 |                   1.13476e+06 |                  -23071.6  |

## 3. NATIONAL DISASTER RESPONSE FUND

(₹crore)

| Year         |   Collection [National Calamity Contingent Duty] (A) |   (Transfer/ Utilisation) (B) |   Balance (A)-(B) |
|--------------|------------------------------------------------------|-------------------------------|-------------------|
| 2014-15      |                                              3732.55 |                       3460.88 |            271.67 |
| 2015-16      |                                              5172.93 |                       5695.7  |           -522.77 |
| 2016-17      |                                              6426.2  |                       6450    |            -23.8  |
| 2017-18      |                                              2938.44 |                       3660    |           -721.56 |
| 2018-19      |                                              1797.8  |                       2500    |           -702.2  |
| 2019-20      |                                              2380.44 |                       2480    |            -99.56 |
| 2020-21      |                                              5098.81 |                       5820    |           -721.19 |
| 2021-22      |                                              6138.3  |                       6134.6  |              3.7  |
| 2022-23      |                                              7168.3  |                       8000.49 |           -832.19 |
| 2023-24      |                                              7812.25 |                       8801.21 |           -988.96 |
| 2024-25 (RE) |                                              9610    |                       9610    |              0    |
| 2025-26 (BE) |                                             10380    |                      10380    |              0    |
| Total        |                                             68656    |                      72992.9  |          -4336.86 |

## 4. AGRICULTURE INFRASTRUCTURE & DEVELOPMENT FUND

(₹crore)

| Year         |   Collection (Agriculture and Infrastructure Cess) (A) | (Transfer/Utilisation) (B)   |   Balance (A) - (B) |
|--------------|--------------------------------------------------------|------------------------------|---------------------|
| 2021-22      |                                                76950.7 | ...                          |             76950.7 |
| 2022-23      |                                                74142   | ...                          |             74142   |
| 2023-24      |                                                80923.6 | 120714.39                    |            -39790.8 |
| 2024-25 (RE) |                                                75180   | 138822.37                    |            -63642.4 |
| 2025-26 (BE) |                                                80030   | 117676.85                    |            -37646.8 |
| Total        |                                               387226   | 377213.61                    |             10012.7 |

## 5. OIL INDUSTRY DEVELOPMENT FUND

| Year          |   Collection* (Cess on Crude Oi l# ) (A) | (Transfer/ Utilisation) (B)   |   Balance (A)-(B) |
|---------------|------------------------------------------|-------------------------------|-------------------|
| 2014-15       |                                  14677.2 | ...                           |          14677.2  |
| 2015-16       |                                  14468.9 | ...                           |          14468.9  |
| 2016-17       |                                  12778.2 | ...                           |          12778.2  |
| 2017-18       |                                  14246.2 | ...                           |          14246.2  |
| 2018-19       |                                  18556.1 | ...                           |          18556.1  |
| 2019-20       |                                  15800.9 | ...                           |          15800.9  |
| 2020-21       |                                  11474.1 | ...                           |          11474.1  |
| 2021-22       |                                  19324.3 | ...                           |          19324.3  |
| 2022-23       |                                  21629.2 | ...                           |          21629.2  |
| 2023-24       |                                  18803.4 | ...                           |          18803.4  |
| 2024-25 (RE)^ |                                  17810   | 17730.00                      |             80    |
| 2025-26 (BE)^ |                                  19330   | 19376.03                      |            -46.03 |
| Total         |                                 198899   | 37106.03                      |         161793    |

## 6. GOODS & SERVICES TAX COMPENSATION FUND

| Year         | Collection (GST Compensation Cess) (A)   | (Transfer/ Utilisation) (B)   | Balance (A)-(B)   |
|--------------|------------------------------------------|-------------------------------|-------------------|
| 2014-15      | ...                                      | ...                           | ...               |
| 2015-16      | ...                                      | ...                           | ...               |
| 2016-17      | ...                                      | ...                           | ...               |
| 2017-18      | 62611.59                                 | 56146.00                      | 6465.59           |
| 2018-19      | 95080.71                                 | 54275.00                      | 40805.71          |
| 2019-20      | 95553.09                                 | 153910.29                     | -58357.20         |
| 2020-21      | 85191.91                                 | 106317.00                     | -21125.09         |
| 2021-22      | 104768.66                                | 110795.47                     | -6026.81          |
| 2022-23      | 125862.41                                | 163506.29                     | -37643.88         |
| 2023-24      | 141436.16                                | 143109.49                     | -1673.33          |
| 2024-25 (RE) | 153440.00                                | 153440.00                     | ...               |
| 2025-26 (BE) | 167110.00                                | 167110.00                     | ...               |
| Total        | 1031054.53                               | 1108609.54                    | -77555.01         |

(₹crore)

(₹crore)