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In a significant decision the Union Cabinet sorted out the difference between groups of ministers and approved the creation of the Prarambhik Shiksha Kosh (PSK). Though the government announced the creation of Prarambhik Shiksha Kosh in this years budget but the decision was delayed due to the differences between the HRD Ministry, the Finance Ministry and the Planning Commission over how the money should be used.
Prarambhik Shiksha Kosh will be created with the money collected from the education cess since the last fiscal. It is estimated that a sum of Rs. 5,010 crores was collected in the last fiscal.Cabinet approved this fund will be non-lapsable which will be maintained by Department of Elementary Education & Literacy in the HRD Ministry and money will be used to finance elementary education and the mid-day meal scheme.
The PSK would be set up on a proforma basis on the lines of the Non-Lapsable Central Pool of Resources for the North-Eastern Region. Besides the cess money, unspent balances related to elementary education in Major Head 2552 meant for North-East States will be parked in the PSK instead of the NLCPR.
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Source
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