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Public Accounts Committee flags delay in transferring cess collections to reserve funds
Why in News?
Public Accounts Committee flags delay in transferring cess collections to reserve funds
The Public Accounts Committee has questioned the government over cess collections not being transferred to their designated reserve funds, reviving scrutiny of Parliament's financial oversight mechanisms.
Why it matters: general awareness
What you need to know
2 min read
The Public Accounts Committee (PAC) of Parliament has flagged the Finance Ministry's failure to transfer cess collections to their designated reserve funds, questioning whether the proceeds were instead used to finance the fiscal deficit.
The PAC examines the accounts of the Union government as reported by the Comptroller and Auditor General (CAG) and is one of Parliament's key financial oversight committees.
Cesses are levied for specific purposes and are meant to be credited to dedicated funds rather than the Consolidated Fund of India's general pool.
Sources: Topper IAS editorial (PIB / The Hindu / Indian Express)
Key facts
Remember these
- Public Accounts Committee
- CAG
- cess
- Consolidated Fund of India
Prelims · Mains
How the exam will ask it
Prelims
- Public Accounts Committee, CAG, cess, Consolidated Fund of India
Mains
Use as an example in GA answers (GS2 - Polity: Parliamentary committees, financial oversight, CAG).
Quick recall
Answer before you reveal
With reference to citizenship determination in India's north-east, consider the following statements:
- Manipur has demanded that a National Register of Citizens exercise use 1951 as the cut-off year, differing from the baseline used in Assam.
- The NRC update in Assam used 24 March 1961 as the cut-off date under the Assam Accord, 1985.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Show answer
Answer: A — Statement 1 is correct - Manipur has sought a 1951 baseline, unlike Assam. Statement 2 is incorrect - the Assam Accord, 1985 fixed the cut-off for detecting foreigners as the midnight of 24 March 1971, not 1961.
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