MUSK SCHEME - A Fund for Students

Madhyamik and Uchcha Madhyamik Sikhsha Kosh (MUSK)

Highlighted Key Points

• The Union Government of India has created a corpus fund for the students of Secondary and Higher Secondary level. The fund is known as Madhyamik and Uchcha Madhyamik Sikhsha Kosh (MUSK).
• The fund of MUSK must be used to implement the schemes related to Secondary and Higher Secondary student’ welfare.
• The maintenance of the non-lapsable pool in Public Account must be administered and supported by the HRD Ministry.
• If the GBS(Gross Budgetary Support) gets finished, there would be no scarcity of funds. The Government would credit the MUSK for using it  when the expenditure in education sector is more than the allocated fund.
• The fund would benefit all the students throughout the country as the MUSK must act as the reservoir.  

Introduction: 

• The Union Government of India has created a corpus fund, which is non-lapsable, for the students of Secondary and Higher Secondary level. The fund is known as “Madhyamik and Uchcha Madhyamik Sikhsha Kosh” (MUSK). Prime Minister Narendra Modi has approved the creation of the fund. It is a public account in which all kind of “Secondary and Higher Education Cess” would be credited. The fund of MUSK must be used to implement the schemes related to Secondary and Higher Secondary student’s upliftment and welfare. It would be treated as the Reserve Fund in no interest section of Public Accounts.

Objectives of the Creation of MUSK:

• The funds under MUSK must be utilized for various schemes related to education sector which will benefit the students of Secondary and Higher Secondary students. 
• It will enhance the access of education in secondary and higher secondary level by ensuring the availability of adequate fund which must not be lapsed at the end of the financial year. 

Main Features of MUSK:

• The maintenance of the non-lapsable pool in Public Account must be administered and supported by the HRD Ministry. 
• The fund would be utilized for the continuing schemes of Secondary and Higher secondary education. Apart from that, the Ministry can also allocate the funds for any future use as per the need following the prescribed procedures. 
• For a financial year, the expenditure for the running schemes of “Department of School Education & Literacy” and “Department of Higher Education” must be funded initially from the Gross Budgetary Support (GBS). If the GBS is finished, only then MUSK can be used. 
• The fund from MUSK must be used in the national schemes like Rashtriya Madhyamik Shiksha Abhyan,National Scheme For Incentives to Girls for Secondary Education and  National Merit Cum Means Scholarship Scheme. 
• In case of the Higher education, the funds would be utilized for Rashtriya Uchchatara Shiksha Abhiyan, Scholarship for College and University students, Scholarship (from Block Grant to the institutions) and National Mission on Teachers and Training, Interest subsidy and Contribution for the Guarantee funds. 
• The fund must be operationalised according to the present arrangements under the Prarambhik Shiksha Kosh (PSK). On the other hand, the cess are used for the “Mid-Day Meal” (MDM) Schemes and “Sarv Shiksha Abhiyan” (SSA) of “Department of School Education & Literacy”.

Benefits of the Fund:

• According to the GDP of India, the expenses in the education field are getting lowered day by day. The corpus fund is beneficial for various schemes related to higher education for the future purpose.   
• If the GBS gets finished, there would be no scarcity of funds. The Government would credit the MUSK for using it when the expenditure in education sector is more than the allocated fund.
• It would be created by the proceeds of cess for the Secondary and Higher Secondary Education which are levied under the Section 136 of the Finance Act, 2007.
• The fund would benefit all the students throughout the country as the MUSK must act as the reservoir.