7 Feb 2022

The health and education cesses were meant to enhance outlays for these crucial sectors but an analysis of Budgets since their introduction shows that their share in total government expenditure remains at about the same level as when these cesses did not exist. In effect, therefore, the cesses have largely replaced rather than adding to normal outlays.

Education cess was introduced in 2004-05. At that time, even without the cess the education outlay was 2.3% of the government’s total expenditure. The present allocation of Rs 1.04 lakh crore in