The Public Accounts Committee (PAC) has expressed serious concerns over the Finance Ministry's failure to transfer ₹9,222 crore collected through various cesses and levies to four designated reserve funds during the 2024–25 fiscal year. This issue was highlighted in Paragraph 3.3.1 of the CAG’s Report No. 6 of 2026. PAC members challenged the Union Finance Ministry’s explanation on handling these cess collections. They stressed that funds raised through specific cesses and levies should be strictly earmarked and used only for their intended purposes, not for broader fiscal needs.
PAC Chairman K.C. Venugopal emphasised that cess proceeds should not be diverted to finance the fiscal deficit. He underscored the need for proper allocation and adherence to the designated use of such funds. This intervention highlights concerns about fiscal discipline, transparency, and accountability in managing government revenue. The committee has insisted on the proper transfer and utilisation of cess collections according to their specified purposes, questioning why the Finance Ministry has not transferred the ₹9,222 crore to the designated reserve funds.
