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GS3 · Fiscal policy

Health Security se National Security Cess Bill, 2025

1 min readTaxation & GST
Battle IAS current affairs title card: Health Security se National Security Cess Bill, 2025 (GS3 · Fiscal policy, 5 December 2025)

What happened

  • The Health Security se National Security Cess Bill, 2025 was introduced to fund national security and public health through a new cess [PIB].

Background

  • Cesses are not shared with states under Article 270. States have complained about the growing use of cesses.

Why it matters

  • Earmarked funding helps these priorities, but states lose out on the divisible pool.

How to use this in Mains

GS-III Fiscal policy

  1. As per PIB (2025-12-05): the Health Security se National Security Cess Bill, 2025 was introduced to fund national security and public health through a new cess.
  2. Earmarked funding helps these priorities, but states lose out on the divisible pool.
Quotable data point

The Health Security se National Security Cess Bill, 2025 was introduced to fund national security and public health through a new cess.

PIB: PIB Backgrounder: HSNS Cess Bill, 5 Dec 2025

Exam angle

UPSC

Prelims: Cess and divisible pool.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

Cesses are shared with states?

Answer (b) & explanation

PIB.

Practice · UPSC

Article on sharing of central taxes

Answer (b) & explanation

PIB.

Practice · UPSC

Twin purpose

Answer (b) & explanation

PIB.

Go deeper

ExplainerGoods and Services Tax (GST): 101st Amendment, CGST, SGST and IGST, GST Council, Rate Structure, Compensation and Issues (UPSC Notes + PYQs)

Official source: PIB: PIB Backgrounder: HSNS Cess Bill, 5 Dec 2025

facts from cited sources only; faculty review pending