Cess under R&D fund under-utilised from 1996-97 to 2012-13:CAG

The cess collected under research and development fund has remained under-utilised from 1996-97 to 2012-13 with only 12.77 per cent of the amount being disbursed during this period, a Comptroller and Auditor General of India report said today.
"It is observed that funds to the extent of Rs 4,139.17 crore was collected during the period from 1996-97 to 2012-13 by way of cess. Out of this, Rs 528.91 crore (12.77 per cent) only was disbursed to TDB as grants in aid during the same period," said the CAG report for 2012-13.
A fund was created under the Research and Development Cess Act for technology development and application which is administered by Technology Development Board (TDB).

TDB in turn disbursed financial assistance and loans of Rs 1,118.67 crore to industrial concerns during this period, the report said further.
Such sums are required to be utilised for the purposes of the fund, the report said.
Though the collection of cess under the Act was substantial. However, the utilisation of the cess proceeds for the intended objectives was not optimal, CAG said.

In turn the cess proceeds are being partly utilised to finance the revenue deficit of the government over the years.
"The matter of under utilisation of the proceeds for the desired objectives, the levy of cess at the rate being collected was raised in previous years too, however, the trend remains the same," the report said.

The R&D Cess Act, which was enacted in 1986, levies and collects cess of not exceeding 5 per cent on all payments for import of technology to encourage use of indigenous technology and adapting imported technology for wider domestic application.