Govt's Cess Spending Soars Post-Pandemic, Tops 100% of Receipts in FY23, FY25

• Govt's cess spending surged post-pandemic, exceeding 100% utilization in FY23 and FY25.
• In FY23, spending reached 142% of collections (Rs 3.18 lakh crore vs Rs 2.24 lakh crore collected).
• Increased cess utilization aligns with the Centre's higher capital expenditure outlay.
• Major cesses for highways, health, and welfare show this trend, often spending more than collected annually.
• A new Health Security se National Security Cess Bill, 2025, is proposed for pan masala to fund public health and national security.

Why It Matters: Increased cess spending funds critical sectors, impacting public services.