Centre approves creation of a single corpus fund for secondary and higher edu

The Centre has approved the creation of a single corpus fund in which all proceeds of secondary and higher education cess will be credited and utilised for the Government's schemes in the education sector.

The Human Resource Development (HRD) Ministry will be responsible for the administration and maintenance of this non-lapsable pool of fund in the public account which will be known as the "Madhyamik and Uchchtar Shiksha Kosh" (MUSK).

The long-pending proposal of the HRD Ministry for the creation of such a corpus fund got the approval of the Union Cabinet at its meeting chaired by Prime Minister Narendra Modi here on Wednesday.
  
“The funds arising from the MUSK would be utilised for schemes in the education sector which would be available for the benefit of students of secondary and higher education, all over the country,” the Government said in a statement after the Cabinet meeting.

In any financial year, the expenditure on ongoing schemes of the Department of School Education and Literacy as well as the Department of Higher Education of the HRD Ministry would be initially incurred from the gross budgetary support (GBS).

“The expenditure would be financed from the MUSK only after the GBS is exhausted. The major benefit will be enhancing access to secondary and higher education through the availability of adequate resources while ensuring that the amount does not lapse at the end of financial year,” the Government said.

Accruals from the Cess would be utilised in the ongoing schemes of secondary and higher education. However, the HRD Ministry can allocate funds for any future programme or scheme of the secondary and higher education, based on the requirement, it added,

In July 2010, the HRD Ministry had circulated a draft cabinet note proposing for the creation of MUSK. The proposal, however, could not see the light of the day as the Department of Economic Affairs rejected it.
EoM/-Prakash Kumar