Finmin fails to pass on education cess money

HRD ministry yet to get Rs 12,000 crore fund.

The finance ministry is yet to release Rs 12,000 crore collected through the 2 per cent education cess to the human resource development ministry.

"We have not yet received any of the cess money," an official in the HRD ministry told Business Standard.

He added that though the Sarva Shiksha Abhiyan (SSA) and the Mid-Day Meal (MDM) scheme were to be funded from the cess proceeds, the ministry was spending from its own budgetary allocation.

The projected expenditure during 2006-07 for these two schemes is Rs 16,348 crore (Rs 11,000 crore for the SSA and Rs 5,348 crore for the MDM). The ministry is hoping that around 62.6 per cent of this will be met from the cess.

"The finance ministry has pointed out that the cess would be made available only from 2007-08. From 2006-07 onwards, the education cess would be entered as a line heading in the Budget document of the HRD ministry," the official said.

The government has projected a collection of Rs 6,975 crore from the cess in 2005-06 as against Rs 5,010 crore collected in 2004-05. Collections for the next fiscal on account of this cess are expected to increase a whopping 46.7 per cent to Rs 10,239.10 crore.

"The receipts from the cess are expected to increase significantly for the next fiscal year. This will ensure funding of increased allocations for the two projects," the official added.