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A recent CAG report has highlighted a major gap in the transfer of cess collections by the central government, amounting to INR 3.69 lakh crore up to FY 2023-24. The issue was raised in the Rajya Sabha by an RJD MP, who pointed to delays and discrepancies spanning decades. Several funds, including those linked to health, education, highways, and investor protection, have seen shortfalls. The MP also questioned inconsistencies between official claims and government accounts, calling for transparency and corrective action to ensure cess funds are used for their intended development purposes.
A member of the Rajya Sabha from the Rashtriya Janata Dal raised concerns over a large gap in the transfer of cess collections to designated funds, referring to findings from a report by the Comptroller and Auditor General (CAG). The report indicated that by FY 2023-24, the central government had not transferred nearly INR 3.69 lakh crore of cess collections to the intended funds, with the earliest instances of such lapses going back to the mid-1970s.
The MP stated during Zero Hour that these gaps have continued over decades and pointed to multiple examples highlighted in the audit findings. In the case of the Oil Industry Development Board, collections of INR 902.40 crore made between the mid-1970s and early 1990s saw further shortfalls over time, resulting in a cumulative deficit of INR 2.95 crore up to FY 2023-24.
In the social sector, cess meant for health and education showed a significant pending transfer of INR 37,537 crore between FY 2018-19 and FY 2023-24. Similarly, the Investor Education and Protection Fund recorded a shortfall of INR 2,505.5 crore, while the fund related to monetisation of national highways reflected a deficit of INR 5,968.1 crore.
The MP also pointed to a mismatch in official figures. As per the finance ministry, around INR 3.66 lakh crore was stated to have been transferred between FY 2018-19 and FY 2023-24. However, government accounts showed transfers of only INR 2.65 lakh crore, indicating a substantial gap that requires reconciliation.
He further stated that such ongoing lapses weaken the purpose of cess collections, which are meant to be directed towards specific development and welfare initiatives. He added that there is a need for clarity to ensure that funds collected from citizens are being used as intended.
The MP raised questions on the reasons behind the non-transfer of these funds and asked what immediate corrective measures the government has taken to avoid similar issues going forward. The matter has brought attention to the need for stronger monitoring and transparent accounting of cess-related funds.
Source PTI
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