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9 September 2026

PAC report on cess and levy fund transfers

The topic involves a specific report by the Public Accounts Committee (PAC) and the CAG regarding fiscal accountability and the misuse of cess funds, which directly relates to parliamentary oversight and financial governance.

1 min read 2 questions 1 prelims

Notes

  • The Public Accounts Committee (PAC) identified a failure to transfer ₹9,222 crore of cess and levy collections to designated reserve funds during the 2024-25 audit period.
  • Findings are documented in Paragraph 3.3.1 of the Comptroller and Auditor General’s (CAG) Report No. 6 of 2026.
  • The PAC emphasizes that cess proceeds must be utilized exclusively for the specific purposes for which they were legislated, rather than to bridge budgetary deficits.
  • Previous PAC recommendations (69th report, August 2023) included: conducting scientific assessments of cess collection amounts and durations, periodic reviews of objective achievement, and ensuring regular crediting of proceeds to reserve funds.
  • The PAC serves as a parliamentary standing committee responsible for scrutinizing government expenditure and financial administration.

Questions

  1. Discuss the role of the Public Accounts Committee (PAC) in ensuring financial accountability and the significance of its recommendations regarding the management of cess and levy collections. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. The practice of diverting cess and levy collections to address budgetary deficits raises concerns regarding fiscal transparency and legislative intent. Analyze the constitutional and administrative implications of failing to transfer earmarked funds to their designated reserve accounts. 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which of the following bodies is primarily responsible for examining the audit reports of the Comptroller and Auditor General (CAG) to ensure financial accountability of the executive?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-09-09/pac-report-on-cess-and-levy-fund-transfers