Economy

Public Accounts Committee flags ₹9,222 crore in cess not transferred to reserve funds

The Public Accounts Committee flagged the failure to transfer ₹9,222 crore in cess collections to their designated reserve funds. Members questioned the Finance Ministry’s explanation, and PAC chief K.C. Venugopal stressed that cess proceeds must be used for their intended purpose and not to finance the fiscal deficit. The finding raises accountability concerns over earmarked levies.

Nabka Insight

PAC oversight of cess proceeds and the role of the committee are examinable polity-plus-economy questions.

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Key facts

  • The PAC flagged failure to transfer ₹9,222 crore in cess to designated reserve funds.
  • Members questioned the Finance Ministry’s explanation.
  • PAC chief K.C. Venugopal said cess must not finance the fiscal deficit.

Relevant forBanking · SSC · State PSC · UPSC

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