Sitharaman stresses need for steady defence funding

Lok Sabha clears Health Security se National Security Cess Bill

- MONIKA YADAV

The Lok Sabha on Friday passed the Health Security se National Security Cess Bill, 2025, with Finance Minister Nirmala Sitharaman defending the proposal as essential for both strengthening national security and supporting public health, while stressing that the levy would fall only on demerit goods, mainly pan masala.

Sitharaman clarified that Section 7(1) of the Bill ring-fences the proceeds strictly for two purposes — strengthening national security and supporting public health. The specific schemes will be prescribed through rules. Since public health is a state subject, she added, the portion earmarked for health will flow to the states.

Moving the Bill for consideration and passing, the minister drew extensively on past capability gaps in defence preparedness and said India “cannot afford” a return to those conditions.