Parliament Question: Allocation of funds collected from surcharge and cess for the intended purposes

Government of India Ministry of Finance Department of Revenue RAJYA SABHA UN-STARRED QUESTION NO-385 ANSWERED ON-03/02/2026 ALLOCATION OF FUNDS COLLECTED FROM SURCHARGE AND CESS FOR THE INTENDED PURPOSES 385. SHRI RANDEEP SINGH SURJEWALA: Will the Minister of FINANCE be pleased to state: (a) the total Government collection from Surcharges and Cesses, year-wise and specific Surcharge/ Cess wise for the years 2020 -21 to 2024 -25, including utilisation thereof and the details of unspent funds, year-wise and head-wise; (b) the reasons as to why a substantial portion of these funds have not been allocated for the intended purposes such as health, education and infrastructure; and (c) whether Government plans to share the funds collected from Surcharges/Cesses with the States, if so, the methodology 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 2020-21 to FY 2025-26 is enclosed as Annexure ‘A’. The details of the collections and utilizations under major cesses since FY 2020-21 is enclosed as Annexure ‘B’. (b) 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 data in Annexure ‘B’ shows the utilization/transfer information regarding various cesses. Cess is utilized towards financing the development/welfare measures in the States through various Central Government schemes and initiatives. (c) 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. ******Annexure A Statement showing details of Cesses & Surcharges levied and collected as part of principal taxes ( ₹ crore ) Name of the levy and tax receipt RE BE Sr No 2020-21 2021-22 2022-23 2023-24 heads 2024-25 2025-26 CESSES AGRICULTURE 1 INFRASTRUCTURE & ... 76950.68 74142.03 80923.60 75180.00 80030.00 DEVELOPMENT CESS 2 CESS ON CRUDE OIL 10894.44 19353.84 21497.14 18803.41 17810.00 19330.00 3 CESSES ON EXPORTS 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 HEALTH & EDUCATION 5 35821.55 52732.33 61809.29 71156.96 85300.00 94000.00 CESS NATIONAL CALAMITY 6 5098.81 6138.30 7168.30 7812.25 9610.00 10380.00 CONTINGENT DUTY ROAD AND 7 235782.55 195986.96 59234.95 44552.49 45250.00 47420.00 INFRASTRUCTURE CESS* GOODS & SERVICES TAX 8 85191.91 104768.66 125862.41 141436.16 153440.00 167110.00 COMPENSATION CESS SURCHARGES 1 Corporation Tax 14078.57 15890.00 55103.79 60373.34 60000.00 70000.00 Taxes on Income other than 2 5537.78 7922.88 53914.24 54793.80 76000.00 85000.00 Corporation Tax 3 Fringe Benefit Tax 0.37 ... ... ... ... ... Social Welfare Surcharge 4 13447.39 16945.06 16178.79 16273.41 17250.00 17500.00 under Customs *Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'.Annexure B 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) Collection (Health and (Transfer/ Utilisation) Balance Year Education Cess) (B) (A) – (B) (A) 2020-21 35894.82 70735.46 -34840.64 2021-22 52750.27 78286.97 -25536.70 2022-23 61813.92 70589.27 -8775.35 2023-24 71158.60 80009.96 -8851.36 2024-25 (RE) 85300.00 87198.73 -1898.73 2025-26 (BE) 94000.00 103000.00 -9000.00 #Reserve Funds viz Madhyamik & Uchhatar Shiksha Kosh (MUSK) and Pradhan Mantri Swastya Surakashi Nidhi (PMSSN) have been operationalized from FY 2022-23 after obtaining approval of C&AG in December, 2022. Amount transferred under MUSK during the FY 2018-19 to FY 2021-22; and under PMSSN during the FY 2020-21 to FY 2021-22 are as per Revised Estimate (RE) related to the respective year(s). 2. CENTRAL ROAD AND INFRASTRUCTURE FUND (₹crore) Collection* (Road and (Transfer/ Utilisation) Balance Year Infrastructure Cess) (B) (A)-(B) (A) 2020-21 235782.55 182363.47 53419.08 2021-22 195986.96 251738.18 -55751.22 2022-23 59234.95 239646.25 -180411.30 2023-24 44552.49 47777.66 -3225.17 2024-25 (RE) 45250.00 39777.90 5472.10 2025-26 (BE) 47420.00 41000.00 6420.00 *Includes additional duty of excise on petrol and diesel, which were known as 'road cess' before introduction of 'road and infrastructure cess'. 3. NATIONAL DISASTER RESPONSE FUND (₹crore) Collection [National Calamity (Transfer/ Utilisation) Balance Year Contingent Duty] (B) (A)-(B) (A) 2020-21 5098.81 5820.00 -721.19 2021-22 6138.30 6134.60 3.70 2022-23 7168.30 8000.49 -832.19 2023-24 7812.25 8801.21 -988.96 2024-25 (RE) 9610.00 9610.00 0.00 2025-26 (BE) 10380.00 10380.00 0.004. AGRICULTURE INFRASTRUCTURE & DEVELOPMENT FUND (₹crore) Collection (Agriculture and (Transfer/Utilisation) Balance Year Infrastructure Cess) (B) (A) - (B) (A) 2021-22 76950.68 ... 76950.68 2022-23 74142.03 ... 74142.03 2023-24 80923.60 120714.39 -39790.79 2024-25 (RE) 75180.00 138822.37 -63642.37 2025-26 (BE) 80030.00 117676.85 -37646.85 * The Cess is being levied in pursuance of Finance Act, 2021. 5. OIL INDUSTRY DEVELOPMENT FUND (₹crore) Collection* (Transfer/ Utilisation) Balance Year (Cess on Crude Oil#) (B) (A)-(B) (A) 2020-21 11474.15 ... 11474.15 2021-22 19324.29 ... 19324.29 2022-23 21629.22 ... 21629.22 2023-24 18803.41 ... 18803.41 2024-25 (RE)^ 17810.00 17730.00 80.00 2025-26 (BE)^ 19330.00 19376.03 -46.03 # The Cess is being levied under Oil Industry (Development) Act, 1974 ^ The Reserve Fund in the Public Account of India has, however, been operationalized, going forward, from FY 2024-25. *Collection data till FY 2022-23 is taken from Annual report 2022-23 of Oil Industry Development Board. 6. GOODS & SERVICES TAX COMPENSATION FUND (₹crore) Collection (GST Compensation (Transfer/ Utilisation) Balance Year Cess) (B) (A)-(B) (A) 2020-21 85191.91 106317.00 -21125.09 2021-22 104768.66 110795.47 -6026.81 2022-23 125862.41 163506.29 -37643.88 141436.16 143109.49 -1673.33 2023-24 2024-25 (RE) 153440.00 153440.00 ... 2025-26 (BE) 167110.00 167110.00 ...