Finance Minister Nirmala Sitharaman on Friday, December 5, strongly defended the Health Security and National Security Cess Bill, 2025, in Lok Sabha, asserting that the levy targets only demerit goods like tobacco and pan masala while emphasising the government's need for steady defence funding.

Responding to concerns during the discussion, Sitharaman clarified that the cess would be imposed exclusively on demerit goods and not expanded beyond this scope.

She stressed that money is fungible and can be deployed for critical areas including defence and infrastructure.

"I need to give money for defence. Collecting revenue and making sure the nation is well is the duty of every government," she stated.

The FM highlighted that proceeds from the cess would be utilised solely for two purposes

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