The Cabinet today approved creation of a single corpus fund in which all proceeds of secondary and higher education cess will be credited and utilised for the government's schemes in education sector.
The HRD Ministry will be responsible for the administration and maintenance of the non-lapsable pool account which will be known as "Madhyamik and Uchchtar Shiksha Kosh" (MUSK).
"The funds arising from the MUSK would be utilised for schemes in the education sector which would be available for the benefit of students of secondary and higher education," an official statement said.
However, in any financial year, the expenditure on ongoing schemes of the Department of School Education and Literacy and Department of Higher Education would be initially incurred from the Gross Budgetary Support (GBS) and the expenditure would be financed from the MUSK only after the GBS is exhausted.
The Cabinet also approved creation of one post of Director and three non-teaching posts for National Institute for Technology (NIT), Andhra Pradesh.