Public Accounts Committee flags failure to transfer ₹9,222 crore in cess collections to designated reserve funds
The Public Accounts Committee has criticized the Union Finance Ministry for failing to transfer over ₹9,000 crore in cess collections to designated reserve funds. The committee argues these funds are being used to cover budget deficits rather than their intended purposes.
Why it matters
This highlights concerns regarding fiscal transparency and the potential misuse of public funds collected through specific levies.
The Public Accounts Committee (PAC) on Tuesday (September 8, 2026) expressed concern over the reported failure to transfer cess and levy collections to designated reserve funds, with members questioning the Union Finance Ministry’s explanation on the issue and reiterating earlier recommendations that such collections be used only for the purposes for which they were raised.
According to an audit examination for 2024-25, ₹9,222 crore collected through various cesses and levies was not transferred to four designated reserve funds during the year. The findings form part of Paragraph 3.3.1 of the Comptroller and Auditor General’s (CAG’s) Report No. 6 of 2026.
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