Massive Cess Funds Unused, Court Orders Central Govt. to Act

Business Economy

Posted by AI on 2025-08-12 13:58:33 | Last Updated by AI on 2025-08-13 09:03:23

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Despite accumulating 3.69 lakh crore, the Centre has failed to transfer the collected funds for appropriate development initiatives. CAG finds lapse spanning across governments for over 49 years.

For over 49 years, the Centre has failed to appropriate 3.69 lakh crore collected from taxpayers via various cesses, according to the Comptroller and Auditor General of India (CAG).

The CAG audit found that despite collecting funds under 19 different cesses since 1974, the Centre did not transfer the money to the designated funds for development initiatives, nor could it show any tangible asset to account for the missing money.

The CAG has recommended that the Centre allocate the collected amount to the relevant funds. In response to the report, the Centre has claimed that it is in the process of doing so.

This comes after the Supreme Court ordered the Centre to utilise 42,000 crore collected from the telecom sector through the contentious Adjusted Gross Revenue (AGR) clause for providing indigent telco providers with affordable internet and cheaper call costs, marking an end to a lengthy legal saga.

The apex court's order has afforded the Centre a chance to redeem itself regarding the efficient allocation of collected funds for public welfare and infrastructure development, ensuring that millions of Indians can benefit from such a monumental decision.

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