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Cess Receipts
Why is it in news?
- As per the CAG report, the Centre retained in the Consolidated Fund of India (CFI) more than Rs. 1.1 lakh crore out of the almost Rs. 2.75 lakh crore collected in 2018-19 through various cesses.
- Government retained it instead of transferring the receipts to the specified Reserve Funds that Parliament had approved for such levies.
More from CAG:
- The Union Government collectedRs. 2,74,592 crore from 35 cesses and levies in 2018-19.
- Under the scheme, such cesses and levies are required to be first transferred to designated Reserve Funds and utilised for the specific purposes intended by Parliament.
- However, only Rs. 1,64,322 crore was transferred to Reserve Funds/Boards and the rest was retained in the Consolidated Fund.
- The GST Compensation Cess, was also ‘short-credited’ to the relevant reserve fund to the extent of Rs. 40,806 crore in 2018-19.
Integrated GST (IGST):
- Flawed IGST accounting led to States receiving less funds from the Centre.
- A sum of Rs. 15,001 crore collected as IGST was erroneously transferred and accounted as States’ share of net proceeds of IGST instead of being apportioned between Centre and States.
- A balance of Rs. 13,944 crore was also left ‘unapportioned’ and retained in the CFI.