PAC questions ministries over short transfer of cess to reserve funds

The Public Accounts Committee (PAC) of Parliament questioned Finance and Health Ministry officials over a CAG report finding that cess and levies were wrongly deposited in the Consolidated Fund instead of designated reserve funds for specific projects.

PAC Examines Short Transfer of Cess Funds

The Public Accounts Committee (PAC) of Parliament on Tuesday heard views of the Finance Ministry and Health Ministry officials on ‘short transfer of levies and cess collections to designated funds’ based on a para of a CAG report released earlier this year. Congress MP KC Venugopal, who chairs PAC, told ANI later that the cess and levies have to be collected for a specific project to spent on that project. He said it should be deposited in the reserve fund. “But here they deposited it in the consolidated fund. So, PAC has done an examination on that,” he said.

The examination was based on Para 3.3.1 of CAG Report No. 6 of 2026 on “Short transfer of levies and cess collections to designated funds”. The Consolidated Fund is the government's main account into which most government revenues are deposited, while designated or reserve funds are meant for specific purposes.

Future Agenda and Additional Subjects

The selection of additional subjects for examination by the Committee during the year 2026-27 was also on the agenda of the PAC meeting. Venugoal said major issues will be taken up and will be circulated.

Report on Indo-China Border Roads Adopted

The meeting’s agenda also included consideration and adoption of the draft report on the “Construction of Indo China Border Roads by Border Roads Organisation” based on C&AG Report No. 5 of 2017. Venugopal said the report will be placed in Parliament. (ANI)

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