Policy Update
Sreedeep Bose
The Madhyamik and Uchchtar Shiksha Kosh (MUSK) forms a secure fund within the Public Account, specifically aimed at secondary and higher education, which was approved by the Government of India in 2017. This fund receives all income generated from the Secondary and Higher Education Cess (SHEC). The management of this fund falls under the purview of the Ministry of Human Resources Development, which employs it to support Various programs in the secondary and higher education landscape.
In the course of the Tenth Five-Year Plan, a 2% education cess was levied on all central taxes from 2004 to provide supplementary financial resources for elementary education, thereby enhancing prior budget allocations. Following this, in 2007, an additional 1% cess on central taxes, termed the Secondary and Higher Education Cess, was established through the Finance Act of 2007 to facilitate universal access to secondary education and broaden the reach of higher education. In February 2016, the Ministry of Human Resources Development requested permission from the Department of Economic Affairs to establish a non-lapsable fund in the Public Account, recognized as MUSK.
In 2018, the Finance Minister of India introduced a new cess, the 4% Health and Education Cess, which replaced both the primary education cess and the secondary and higher education cess. This new cess was put into effect starting from the financial year 2018-19.
The Union Cabinet has approved the creation of a single, stable corpus fund known as the Madhyamik and Uchchtar Shiksha Kosh (MUSK).
This fund is designed to gather all revenue from the secondary and higher education cess, which will be directed towards governmental educational programs.
Features of MUSK :
The Union Cabinet has sanctioned establishing a non-lapsable fund dedicated to secondary and higher education, termed the Madhyamik and Uchchtar Shiksha Kosh. All revenues generated from the ‘Secondary and Higher Education Cess’ will be deposited into this fund. This Cess is an additional charge of 1% imposed on central taxes and will be overseen by the Ministry of Human Resource Development.
1. Contributions to the proposed non-lapsable fund will be allocated for the advancement of secondary and higher education.
2. For Secondary Education: Currently, the Ministry of Human Resource Development anticipates that the funds derived from the Cess will be applied to secondary education for:
the ongoing Rashtriya Madhyamik Shiksha Abhiyan Scheme along with other sanctioned initiatives, such as:
- the National Means-Cum-Merit Scholarship Scheme and
- the National Scheme for Incentives to Girls for Secondary Education.
3. For Higher Education: the funds will be utilized for:
- existing schemes related to Interest Subsidy and contributions to guarantee funds and , scholarships for college and university students;
- Rashtriya Uchchtar Shiksha Abhiyaan;
- scholarships (through Block Grant to the institutions) and the National Mission on Teachers and Training.
- Nevertheless, the Ministry of Human Resource Development holds the authority to allocate funds for any secondary and higher education program or scheme, depending on the needs and established procedures.
The intention behind imposing the cess for secondary and higher education is to ensure sufficient resources are available for these educational levels.
The fund will be implemented following the existing framework of the Prarambhik Shiksha Kosh (PSK), wherein the revenues from the cess are designated for the Sarv Shiksha Abhiyan (SSA) and Mid-Day Meal (MDM) Schemes under the Department of School Education and Literacy.
How will the MUSK fund be allocated?
The fund will be implemented according to the guidelines established by the Prarambhik Shiksha Kosh (PSK)
While the financial resources are directed toward the Mid-Day Meals (MDM) Scheme and the Sarv Shiksha Abhiyan (SSA) of the Department of School Education & Literacy.
- MUSK will be allocated for Secondary education, as part of the ongoing Madhyamik Shiksha Abhiyan Scheme, the National Means Cum Merit Scholarship Scheme, and the National Scheme for Incentives to Girls for Secondary Education.
- It will also support Higher education through current initiatives such as interest subsidies and contributions to guarantee funds, scholarships for college and university students, the Rashtriya Uchchtar Shiksha Abhiyan, scholarships from block grants to institutions, and the National Mission on Teachers and Training.
The Madhyamik and Uchchtar Shiksha Kosh will provide for the following:
- Subsidies on educational loans
- Education credit guarantee funds
- Scholarship programs
- Initiatives for girls’ education
- Funding for higher education at the state level.
Scheme-wise utilization of MUSK
(Rupees in crore)
| S.No | Schemes | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
1 | Pradhan Mantri Rashtriya Uchhatar Shiksha Abhiyan (PM-RUSA) | 1,136.94 | 0.00 | 229.67 | 250.00 | 0.00 |
2 | Interest Subsidy and contribution for Guarantee Funds | 1,632.90 | 1,476.79 | 1,385.21 | 873.49 | 0.00 |
| 3 | Scholarship for College and University students | 360.25 | 164.06 | 191.96 | 150.00 | 0.00 |
4 | Pandit Madan Mohan Malviya National Mission on Teachers andTeaching | 74.63 | 0.00 | 23.38 | 0.00 | 0.00 |
5 | Support to Indian Institutes of Technology | 1,499.00 | 3,370.70 | 1,536.02 | 2,500.00 | 1,500.00 |
| 6 | University Grants Commission (UGC) | 1,810.25 | 2,541.11 | 4,723.20 | 4,355.00 | 1,000.00 |
| 7 | All India Council for Technical Education(AICTE) | 400.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 8 | Grants to Central Universities (CUs) | 1,334.75 | 6,329.97 | 7,479.79 | 3,595.00 | 1,000.00 |
| 9 | Support to National Institutes of Technology | 829.03 | 920.69 | 2,235.00 | 2,500.00 | 1,500.00 |
10 | Pradhan Mantri Uchchatar Shiksha Protsahan (PM-USP) | 0.00 | 0.00 | 0.00 | 0.00 | 1,000.00 |
| 11 | Samagra Shiksha | 3,491.41 | 3,267.12 | 2,900.00 | 4,000.00 | 3,000.00 |
12 | National Means cum Merit Scholarship Scheme | 308.80 | 200.00 | 250.00 | 250.00 | 250.00 |
| S.No | Schemes | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
13 | National Scheme for Incentive to Girl Child for Secondary Education | 4.14 | 0.00 | 0.00 | 0.00 | 0.00 |
14 | Kendriya Vidyalaya Sangathan | 0.00 | 2,100.00 | 1,000.00 | 2,500.00 | 1,000.00 |
| 15 | Navodaya Vidyalaya Samiti | 0.00 | 0.00 | 2,000.00 | 3,350.00 | 1,750.00 |
| Total | 12,882.10 | 20,370.44 | 23,954.23 | 24,323.49 | 12,000.00 |
(Source: Ministry of Finance)
Conclusion
The funds arising from MUSK will be utilised for schemes in the education sector, which will be available for the benefit of students of secondary and higher education students all over the country. It will be administered and maintained by the Union Ministry of Human Resource Development.
The MUSK will be maintained as a Reserve Fund in the non-interest-bearing section of the Public Accounts of India. It will be operationalised as per the present arrangements under Prarambhik Shiksha Kosh (PSK) wherein the proceeds of cess are used for Sarv Shiksha Abhiyan (SSA) and Mid-Day Meal (MDM) Schemes.
The expenditure on ongoing schemes of the HRD Ministry will be initially incurred from the gross budgetary support (GBS) in any financial year and the expenditure will be financed from MUSK only after the GBS is exhausted.
The proposal for establishing MUSK was first put forward in 2010 but faced rejection at that time. It was brought back for consideration in 2016 and subsequently approved by the Department of Economic Affairs. The fund is analogous to the Prarambhik Shiksha Kosh (PSK), which was created to support elementary education initiatives. MUSK aims to fund programs such as the Rashtriya Madhyamik Shiksha Abhiyan Scheme, the National Means-Cum-Merit Scholarship Scheme, the National Scheme for Incentives to Girls for Secondary Education, the Rashtriya Uchchtar Shiksha Abhiyan, and the National Mission on Teachers and Training.
References
- Press Release: Press Information Bureau (pib.gov.in)
- Sharma, S., & Thakur, S. (2022). Quality Education. YOJANA, 45.
- Joshi, M. EMPOWERING WOMEN THROUGH EDUCATION AND SKILL DEVELOPMENT: CHALLENGES AND INITIATIVES.
About the Contributor: Sreedeep Bose, who has qualified for the UGC NET in Ph. D, is dedicated to enhancing understanding in social science and public policy. With a focus on meaningful research, Sreedeep intends to provide creative solutions to current societal issues.
Acknowledgement: The author sincerely thanks Ms. Aasthaba Jadeja and the IMPRI fellows for their valuable contributions.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI:
Digital Land Records Modernisation Programme (DILRMP), 2016
