New Delhi: Taxpayers across the board will have to bear the burden of additional cess of one percent that will be used to expand the capacity of educational institutions for implementing the caste-based quota.

"While the cess of 2 percent on all taxes to fund basic education will remain, I propose to levy an additional cess of 1 percent on all taxes to fund secondary education and higher education and the expansion of capacity by 54 percent for reservation for socially and educationally backward classes," Finance Minister P. Chidambaram announced Wednesday while presenting the union budget for 2007-08.

The government's proposal last year to expand the scope of the quota policy to the other backward classes (OBCs) had led to student protests in cities even as it was welcomed by many.

In a compromise formula, the government had proposed to expand the capacity of educational institutions to create extra seats for students from the marginalised communities. (IANS)