Madhyamik and Uchchtar Shiksha Kosh

Madhyamik and Uchchtar Shiksha Kosh 

S.O. 2428(E).—I. Genesis of Madhyamik and Uchchtar Shiksha Kosh (MUSK).—1. During the 10th Plan, an education cess of 2% on all central taxes was imposedued w.e.f. 01.04.2004 to make available additional resources for basic education/elementary education to augment the existing budgetary resources. Accordingly, a Prarambhik Shiksha Kosh (PSK) was created as a receptacle for the proceeds of the Education Cess with the approval of the Cabinet on 6th October, 2005.

2. Thereafter, a need was felt to give a similar fillip to the effort of the Central Government in universalizing access to secondary education and expanding the reach of the higher education sector. The Central Government through the Finance Act, 2007, levied an additional Education Cess @ 1% of income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance the secondary and higher education. W.e.f. 01.04.2018, the 3% Education Cess was replaced by Health and Education Cess @ 4% of income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance, quality health services and universalised quality basic education and secondary and higher education.

3. In 2017, the Government approved the creation of a non-lapsable fund in the Public Account for secondary and higher education called “Madhyamik and Uchchtar Shiksha Kosh (MUSK)” as a receptacle for the proceeds of the Secondary and Higher Education Cess (SHEC) in the following manner:

• i. Madhyamik and Uchchtar Shiksha Kosh would be administered and maintained by Ministry of Education in accordance with instructions issued by Ministry of Finance from time to time.
• ii. Accruals from the Cess would be utilized in the on-going schemes of Secondary and Higher Education. However, the Ministry of Education can allocate funds for any future programme/scheme of Secondary and Higher Education based on the requirement as per prescribed procedure.
• iii. In any financial year, the expenditure on on-going schemes or any other schemes as amended from time to time, of the Department of School Education & Literacy and Department of Higher Education would be initially incurred from the Gross Budgetary Support (GBS) and the expenditure would be financed from the Madhyamik and Uchchtar Shiksha Kosh only after the GBS is exhausted.
• iv. MUSK would be maintained as a Reserve  Fund in the non-interest bearing section of the Public Accounts of India.

• (i) Samagra Shiksha
• (ii) National Means-cum-Merit Scholarship Scheme
• (iii) Kendriya Vidyalaya Sangathan (KVS)
• (iv) Navodaya Vidyalaya Samiti (NVS)

• (i) Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) Yojana
• (ii) Rashtriya Uchchtar Shiksha Abhiyan (RUSA)
• (iii) Grants to Autonomous Bodies (Including UGC, CUs, IITs, NITs etc.)

However, The Ministry of Education can allocate funds for any future programme/scheme of Secondary and Higher Education based on the requirement as per prescribed procedure.

5. The Cabinet approved the creation of Madhyamik and Uchchtar Shiksha Kosh (MUSK) on 16.08.2017 as a non-lapsable Reserve Fund in the non-interest bearing section of the Public Account, into which all proceeds from Secondary and Higher Education Cess (levied up to 31.03.2018) would be credited. Share of Health & Education Cess (levied w.e.f. 01.04.2018) relating to Secondary and Higher Education (i.e. 1% out of the 4% Health & Education Cess) would also be credited to MUSK.

6. (i) Madhyamik and Uchchtar Shiksha Kosh shall be maintained as a non-lapsable Reserve Fund in the non- interest bearing section of the Public Account of India. The account thereof shall be administered and maintained by Ministry of Education, through Department of School Education & Literacy and Department of Higher Education.

(ii) All proceeds of the Education Cess shall be credited into Madhyamik and Uchchtar Shiksha Kosh after obtaining due approval of the Parliament through Demands for Grants;

(iii) The amounts in the Madhyamik and Uchchtar Shiksha Kosh shall be utilized for various Budget Lines of Department of School Education & Literacy and Department of Higher Education each year after exhausting the Gross Budgetary Support.

(iv) The creation of fund out of receipts of Health and Education Cess (HEC) on income-tax and expenditure met from the Madhyamik and Uchchtar Shiksha Kosh are independent of each other.

IV. Periodicity and Modality of transfer of funds from Consolidated fund of India to Madhyamik and Uchchtar Shiksha Kosh (MUSK)

7. (i) The Health and Education Cess (HEC) is being collected by CBDT and presently accounted in the Consolidated Fund of India under a distinct Minor Head ‘506– Health and Education Cess’ below the following Major Heads:

1. 0020 – Corporation Tax

2. 0021 – Taxes on Income other than Corporation Tax

(ii) Pr. Chief Controller of Accounts (CBDT) will furnish the information on collection of Health and Education Cess to the Pr. Chief Controller of Accounts, Ministry of Education on monthly/quarterly basis.

(iii) One Minor head “Madhyamik and Uchchtar Shiksha Kosh” under the Major Head  “8229— Development and Welfare Funds” as a non-lapsable fund and in the non-interest bearing section of Public Account of India shall be opened for crediting the share of Education Cess relating to secondary and higher education (i.e. 1% out of 4 %HEC) and creation of MUSK.

(iv) In order to ensure transparency and distinction between allocations for ‘Madhyamik Shiksha’ and ‘Uchchtar Shiksha’ under the Department of School Education & Literacy and Department of Higher Education, two distinct sub-heads viz. ‘Madhyamik Shiksha Kosh’ and ‘Uchchtar Shiksha Kosh’ will

be opened and operated by the two departments respectively.

(v) As per Government of India (Allocation of Business) Rules 3(2) read with GFR- 70 (2017), the compiling of the accounts of each Department shall stand allocated to that Department only. Therefore, 1% out of the 4% HEC collected will be apportioned between D/o School Education & Literacy and D/o Higher Education in the ratio of Forty : Sixty (40:60), respectively and Budget Provision will be made under object head “63-Inter Account Transfer” for facilitating the transfer of actual HEC collected, to MUSK created in Public Account. An equivalent to the share in proceeds of Health and Education Cess allocated to Secondary & Higher Education (which is 1% out of the 4% HEC) will be transferred to MUSK by D/o School Education & Literacy and D/o Higher Education. Any mismatch between the collections and transfers in any year will be recognized and appropriate executive/administrative decision made thereon by the Ministry of Finance.

8. The MUSK Account will appear separately in the Finance Accounts of both the Departments i.e. School Education & Literacy and Higher Education. For this purpose, the budget shall be provisioned in the Detailed Demand for Grants of Department of both the Departments under the following heads:-

(a) Major Head 2202 – General Education

Sub Major Head 02 – Secondary Education

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Madhyamik Shiksha Kosh

Detailed Head xx- Transfer to Madhyamik Shiksha Kosh- General Education (Secondary Education)

Object head 63 –Inter Account Transfer

(b) Major Head 3601 – Grants-in-Aid to State Governments Sub Major Head 06 – Centrally Sponsored Schemes

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Madhyamik Shiksha Kosh

Detailed  Head  xx-  Transfer  to  Madhyamik  Shiksha  Kosh-  Grants-in-Aid  to  State Governments (Centrally Sponsored Schemes)

Object head 63 –Inter Account Transfer

(c) Major Head 3602 – Grants-in-Aid to Union Territory Governments with Legislature Sub Major Head 06 – Centrally Sponsored Schemes

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Madhyamik Shiksha Kosh

Detailed Head xx- Transfer to Madhyamik Shiksha Kosh- Grants-in-Aid to UnionTerritory Governments with Legislature (Centrally Sponsored Schemes)

Object head 63 –Inter Account Transfer

(a) Major Head 2202 – General Education

Sub Major Head 03 – University and Higher Education

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Uchchtar Shiksha Kosh Detailed Head xx- Transfer to Uchchtar Shiksha Kosh- General Education (University and Higher Education)

Object head 63 –Inter Account Transfer

(b) Major Head 2203 – Technical Education

Minor Head 00.797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh-Uchchtar Shiksha Kosh Detailed Head xx- Transfer to Uchchtar Shiksha Kosh- Technical Education

Object head 63 –Inter Account Transfer

(c) Major Head 3601 – Grants-in-Aid to State Governments Sub Major Head 06 – Centrally Sponsored Schemes

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Uchchtar Shiksha Kosh

 Detailed Head xx- Transfer to Uchchtar Shiksha Kosh- Grants-in-Aid to State Governments (Centrally Sponsored Schemes)

Object head 63 –Inter Account Transfer

(d) Major Head 3602 – Grants-in-Aid to Union Territory Governments with Legislature Sub Major Head 06 – Centrally Sponsored Schemes

Minor Head 797 –Transfer to Reserve Fund/Deposits Account

Sub-head xx –Transfer to Madhyamik and Uchchtar Shiksha Kosh- Uchchtar Shiksha Kosh Detailed Head xx- Transfer to Uchchtar Shiksha Kosh- Grants-in-Aid to Union Territory Governments with Legislature (Centrally Sponsored Schemes)

Object head 63 –Inter Account Transfer

9. On the basis of HEC collection figures received from CBDT, the Administrator in each Department (Department of School Education & Literacy and Department of Higher Education) with concurrence of the Internal Finance Division will issue quarterly/periodic sanction order for transfer of share of receipts of share of Health and Education Cess relating to Secondary & Higher education (i.e. 1% out of the 4% HEC) to MUSK in Public Account. On issue of sanction, the Pay & Accounts Officer (SE&L) and Pay & Accounts Officer (HE) shall make the following accounting entries:……………… Read more.

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