PAC quizzes ministries on short transfer of cess funds
PAC reviewed Finance and Health Ministry responses to a CAG audit observation on cess collections being parked in the Consolidated Fund instead of designated reserve funds.
The Public Accounts Committee (PAC) of Parliament met on Tuesday to examine a CAG audit observation concerning the short transfer of levies and cess collections to their designated funds. Officials from the Finance Ministry and the Health Ministry appeared before the panel to offer their views on the matter.
The review was based on Paragraph 3.3.1 of CAG Report No. 6 of 2026, which flagged the issue. Congress MP K.C. Venugopal, who chairs the PAC, explained that cess and levies are meant to be collected for specific projects and should be deposited into the corresponding reserve funds. However, in this instance, the amounts were deposited into the Consolidated Fund of India, prompting the committee's examination.
The Consolidated Fund serves as the government's primary account for most revenues, while designated or reserve funds are earmarked for particular purposes. The committee's agenda also included the selection of additional subjects for examination during the year 2026-27, with major issues to be circulated later.
Additionally, the PAC considered and adopted a draft report on the construction of Indo-China border roads by the Border Roads Organisation, based on CAG Report No. 5 of 2017. Venugopal indicated that this report would be placed before Parliament.