3.5 lakh crore raised as cess in 2021-2022 & spent through states: Nirmala – Times of India

NEW DELHI: The Centre collected around Rs 3.49 lakh crore as different cesses during 2021-22 compared to approximately Rs 2.97 lakh crore in 2020-21 and spent the amounts through the states, the government informed the Rajya Sabha on Tuesday. It said cess is collected under 10 major heads, including road & infrastructure, health & education, and agriculture infrastructure & development.
Union finance minister Nirmala Sitharaman said cesses were spent through states and the Union government did not have anything to do with them.
Responding to question on what the Centre was doing with the collected cess and a demand to share them with states, she said, “More than what has been collected as cess has been spent, and that is spent through the states,” she said, citing examples of education-related cess.
The FM said that collection of road & infrastructure cess had come down as a result of reduction in excise duties on petrol and diesel but the government was committed to meet the gap. “So, everything and more than everything that is collected as cess, is spent through the states, for the states, and if there are gaps, the Centre fills them up,” she said. Sources said during the current financial year, Rs 3.77 lakh crore had been collected but Rs 3.93 lakh crore was spent.