Lok Sabha Q&A – Education Cess 

Lok Sabha Q&A – Education Cess 

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
LOK SABHA

UNSTARRED QUESTION NO: 1168

ANSWERED ON:09.02.2018

Education Cess

KINJARAPU RAM MOHAN NAIDU

(a)The details of the expenditure of education cess since it is being levied by Government, State/UT-wise;

(b)Whether the entire amount of fund collected as education cess is spent on education related programmes and activities, if so, the details thereof and if not, the reasons therefor;

(c)Whether the fund collected under education cess has not been fully utilized, if so, the details thereof and the reasons therefor; and

(d)Whether the education cess has contributed in a positive manner to any of its objectives, if so, the details thereof?

Will the Minister of FINANCE be pleased to state:-

ANSWER

MINISTER OF STATE FOR FINANCE

(SHRI P. RADHAKRISHNAN)

For (a) to (c): The Education Cess comprises of 2% Primary Education Cess and 1% Secondary & Higher Education Cess. The Primary Education Cess is credited to Prarambhik Shiksha Kosh (PSK) and is used to meet part of expenditure on Sarva Shiksha Abhiyan (SSA) & part on Mid Day Meal (MDM) Scheme. The proceeds of Secondary and Higher Education Cess (SHEC) is credited to a single non-lapsable pool known as “Madhyamik and Uchchtar Shiksha Kosh” (MUSK) that has been created in the year 2017. Primary Education Cess collected from the period 2004-05 to 2016-17 is Rs.1,93,828 crores. The utilisation from PSK towards SSA during the above mentioned period is Rs.1,20,239 crores and towards MDM is Rs.58,503 crores. Collection of Secondary & Higher Education Cess from the period 2004-05 to 2016-17 is Rs.83,489 crores. The proceeds of the Secondary & Higher Education Cess are considered to have financed part of the expenditure of higher education through the demands for grants of the M/o Human Resource Development (HRD).

For (d): Yes Sir, Education Cess has contributed in a positive manner to its objectives. While the implementation of SSA programme has resulted in near universal access at primary level, the Mid Day Meal programme has benefitted in providing hot-cooked meals to 9.78 crore children studying in 11.40 lakh institutions during 2016-17.

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