News:Union Minister for Road Transport and Highways has informed Lok Sabha about the Central Road and Infrastructure Fund.
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.
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.
- 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.