New Delhi, July 29 – The central government has projected a 9.43% rise in cess and surcharge collections for FY26, budgeting a total of ₹5.91 lakh crore. This includes ₹4.18 lakh crore from cess and ₹1.72 lakh crore from surcharge, as informed in the Rajya Sabha on Tuesday.
In comparison, collections in FY25 were lower—₹3.87 lakh crore from cess and ₹1.53 lakh crore from surcharge—bringing the total to ₹5.4 lakh crore. The revised estimates indicate a ₹51,000 crore increase in overall collections, reflecting the government’s emphasis on non-divisible tax revenue.
Minister of State for Finance Pankaj Chaudhary, in a written reply, clarified that cess and surcharge are levied by the Centre for Union purposes under Article 271 of the Constitution. These levies are over and above the basic taxes and are not shared with states, unlike the divisible pool of income tax and corporate tax.
Cess is often imposed for specific purposes such as education, health, or infrastructure development, while surcharge is generally levied on higher income brackets or specific goods and services.
The steady increase in these collections underscores the government’s strategy to strengthen its fiscal position without altering base tax rates. It also points to rising consumption and economic activity, as many of these levies are tied to transactions, income, or production.
This data reflects the Centre’s continued reliance on cess and surcharge to fund centrally sponsored schemes and infrastructure, especially when there are constraints on raising base taxes or borrowing.
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