GENERAL8 Sept 2026
Public Accounts Committee flags failure to transfer ₹9,222 crore in cess collections to designated reserve funds
India's Public Accounts Committee (PAC) has criticised the Finance Ministry for not transferring ₹9,222 crore of cess collections into four designated reserve funds during 2024-25. The Comptroller and Auditor General (CAG) flagged gaps, including a ₹6,646 crore shortfall for the health fund. PAC chairperson says cess is paid by everyone and must be used only for its intended purpose.
Key Statutory Highlights
- PAC criticised the Finance Ministry for failing to transfer ₹9,222 crore in cess collections to four reserve funds in 2024-25.
- The CAG found the largest shortfall in the PMSSN health fund, where ₹6,646 crore less was transferred than collected.
- PAC chairperson K.C. Venugopal said cess proceeds must not be used to cover the budget deficit but for their intended purpose.
Actionable Advice for Taxpayers / Founders:If you pay taxes or buy goods that attract cess, there is no compliance step for you right now — just keep an eye on budget announcements to see how these funds are eventually used.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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