News:Union Minister for Road Transport and Highways has informed Lok Sabha about the Central Road and Infrastructure Fund.
Facts:
About Central Road and Infrastructure Fund:
- The Central Road and Infrastructure Fund which was earlier known as Central Road Fund(CRF) was established under the Central Road Fund Act,2000
- The fund is basically a cess imposed along with excise duty on petrol and diesel.
- The cess revenue was accrued to the CRF which was uniquely created and out of this major road projects were financed ever since its launch.
- The administrative control of Central Road and Infrastructure Fund (CRIF) is under the Department of Economic Affairs (DEA),finance Ministry.
- Earlier, it was under the domain of Ministry of Road Transport and Highways.
Additional information:
About the Central Road Fund Amendment act,2018:
- In Budget 2018,Government had amended the Central Road Fund Act, 2000 and had renamed the Central Road Fund as Central Road and Infrastructure Fund (CRIF).
- The main purpose of the amendment is to use the proceeds of the road cess under CRIF to finance other infrastructure projects including waterways, railway infrastructure, social infrastructure among others.
About Cess:
- A cess is a tax that is levied by the government to raise funds for a specific purpose.
- The Cess is not a permanent source of revenue for the government and it is discontinued when the purpose levying it is fulfilled.
