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  1. Home
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Economy·Easy

With reference to the Central Road and Infrastructure Fund (CRIF), which of the following statements is/are correct? 1. The CRIF is basically a cess, imposed along with the excise duty on petrol and diesel. 2. The proceeds of this Fund can be used only for the construction of national highways. 3. This Fund comes under the Ministry of Road Transport and Highways. Select the correct answer using the code given below:

With reference to the Central Road and Infrastructure Fund (CRIF), which of the following statements is/are correct? 1. The CRIF is basically a cess, imposed along with the excise duty on petrol and diesel. 2. The proceeds of this Fund can be used only for the construction of national highways. 3. This Fund comes under the Ministry of Road Transport and Highways. Select the correct answer using the code given below:

Options

  1. a.

    1 only

    Correct answer
  2. b.

    1 and 2 only

  3. c.

    1 and 3 only

  4. d.

    1, 2 and 3

Explanation

  • The Central Road Fund (CRF) 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 Budget 2018 has amended the Central Road Fund Act, 2000 and has renamed the Central Road Fund as the 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, some portion of the railway infrastructure and even social infrastructure, including education institutions, medical colleges, etc.
  • The amendment prescribes that the road cess is first credited to the Consolidated Fund of India and later, after adjusting for the cost of tax collection, should go to the CRIF.
  • As per the amendment to the Government of India (Allocation of Business) Rules, 1961 in July, 2018, the subject matter pertains to the Ministry of Finance.

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