Consider the following statements about government steps to finance education in India:
(A) The Government of India levies a 2 per cent education cess on all Union taxes.
(B) Revenue from the education cess is earmarked for spending on higher education.
(C) The government sanctions a large outlay for the promotion of higher education.
(D) New loan schemes have been started for students to pursue higher education.
(E) The education cess is levied on all State taxes.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (D) only
(A) The Government of India levies a 2 per cent education cess on all Union taxes. — Correct. The cess is 2 per cent on Union taxes.
(B) Revenue from the education cess is earmarked for spending on higher education. — Incorrect. The cess revenue is earmarked for elementary education.
(C) The government sanctions a large outlay for the promotion of higher education. — Correct. Higher education gets its own large outlay.
(D) New loan schemes have been started for students to pursue higher education. — Correct. Loan schemes help students go on to higher education.
(E) The education cess is levied on all State taxes. — Incorrect. It is levied on all Union taxes.
NCERT (2026-27): “Growth in Government Expenditure on Education: … Government of India has also started levying a 2 per cent ‘education cess’ on all Union taxes. The revenues from education cess has been earmarked for spending on elementary education. In addition to this, the government sanctions a large outlay for the promotion of higher education and new loan schemes for students to pursue higher education.” |