Government's Rising Cess and Surcharge Collections in FY26

The central government has projected a collection of Rs 5.91 lakh crore from cess and surcharge in the current financial year, marking a 9.43% increase from the previous year, according to information provided to Parliament on Tuesday.

Minister of State for Finance, Pankaj Chaudhary, stated in the Rajya Sabha that the revenue from these levies, under Article 271 of the Constitution, supports union government purposes such as Centrally Sponsored Schemes. Finance Minister Nirmala Sitharaman reported Rs 83,071 crore was raised from health and education cess in FY25, with corresponding expenses reaching Rs 87,199 crore.

Despite arguments from opposition-party-led states to include cess collections in the divisible pool, currently, these revenues remain exclusive to the Centre, which already divides 41% of collected taxes with states. Eight cesses and various surcharges, affecting corporate tax and income tax, are currently in operation.

(With inputs from agencies.)