The Hindu : National : 2 per cent education cess proposed

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Friday, Jul 09, 2004

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National

2 per cent education cess proposed

By Aarti Dhar

NEW DELHI, JULY 8. The Union Finance Minister, P. Chidambaram, today proposed a surcharge of two per cent on all Central taxes to fund primary education. The cess is expected to yield Rs. 4,000 crores to Rs. 5,000 crores annually, and the amount will be used for expanding primary education, including providing cooked mid-day meals to the students.

"If primary education and the nutritious cooked meal scheme can work hand in hand, I believe there will be a new dawn for the poor children of India," Mr. Chidambaram said in his Budget speech. The education cess was part of the United Progressive Alliance's National Common Minimum Programme (NCMP). The allocation for the Sarva Shiksha Abhiyan — the universal elementary education programme — initiated by the former Human Resource Development Minister, Murli Manohar Joshi, has been increased from Rs. 2,732.32 crores to Rs. 3,057 crores. Similarly, allocation for the mid-day meal scheme has gone up to Rs. 1,675 crores from Rs. 1,375 crores. The total outlay for elementary education is Rs. 5,752.53 crores, an increase of about Rs. 533 crores.

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