Ministry of Finance (India)

The Ministry of Finance (IAST: Vitta Maṃtrālaya) is an important ministry within the Government of India concerned with the economy of India, serving as the Indian Treasury Department. In particular, it concerns itself with taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget.[2]

Ministry of Finance
Emblem of India

North Block, Central Secretariat
Agency overview
Formed29 October 1946 (1946-10-29)
JurisdictionPrime Minister of India
HeadquartersCabinet Secretariat
Raisina Hill, New Delhi
Minister responsible
Deputy Minister responsible
Agency executives
  • Ajay Bhushan Pandey, IAS, Finance Secretary & Revenue Secretary
  • Tarun Bajaj, IAS, Economic Affairs Secretary
  • T.V. Somnathan, IAS, Secretary (Expenditure secretary)
  • Debasish Panda, IAS, Secretary (Financial Services)
  • Tuhin Kanta Pandey IAS, Secretary (Investment and Public Asset Management)
  • Krishnamurthy Subramanian, Chief Economic Adviser
Child agencies
  • Department of Economic Affairs
  • Department of Expenditure
  • Department of Revenue
  • Department of Financial Services
  • Department of Investment and Public Asset Management
Key documents
Websitefinmin.nic.in

The Ministry of Finance is the apex controlling authority of the Indian Revenue Service, Indian Economic Service, Indian Cost Accounts Service and Indian Civil Accounts Service.

History

R. K. Shanmukham Chetty was the first Finance Minister of independent India. He presented the first budget of independent India on 26 November 1947.[3]

Organisational structure

The Union Finance Ministry of India comprises five departments.[4]

Department of Economic Affairs

The Department of Economic Affairs is the nodal agency of the Union Government to formulate and monitor country's economic policies and programmes having a bearing on domestic and international aspects of economic management. A principal responsibility of this Department is the preparation and presentation of the Union Budget to the parliament and budget for the state Governments under President's Rule and union territory administrations. Other main functions include:

  • Formulation and monitoring of macroeconomic policies, including issues relating to fiscal policy and public finance, inflation, public debt management and the functioning of Capital Market including Stock Exchanges. In this context, it looks at ways and means to raise internal resources through taxation, market borrowings and mobilisation of small savings;
  • Monitoring and raising of external resources through multilateral and bilateral Official Development Assistance, sovereign borrowings abroad, foreign investments and monitoring foreign exchange resources including balance of payments;
  • Production of bank notes and coins of various denominations, postal stationery, postal stamps; and Cadre management, career planning and training of the Indian Economic Service (IES).

The Foreign Investment Promotion Board (FIPB), housed in the Department of Economic Affairs, Ministry of Finance, was an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval. FIPB is now abolished as announced by Finance Minister Arun Jaitley during 2017-2018 budget speech in Lok Sabha.[5]

Shri tarun bajaj is the current secretary of this department.[6]

Pranab Mukherjee, Former Finance Minister of India with Former US President George W. Bush .

Department of Expenditure

The Department of Expenditure is the nodal Department for overseeing the public financial management system (PFMS) in the Central Government and matters connected with the finances. The principal activities of the Department include a pre-sanction appraisal of major schemes/projects (both Plan and non-Plan expenditure), handling the bulk of the Central budgetary resources transferred to States, implementation of the recommendations of the Finance and Central Pay Commissions, overseeing the expenditure management in the Central Ministries/Departments through the interface with the Financial Advisors and the administration of the Financial Rules / Regulations /Orders through monitoring of Audit comments/observations, preparation of Central Government Accounts, managing the financial aspects of personnel management in the Central Government, assisting Central Ministries/Departments in controlling the costs and prices of public services, assisting organizational re-engineering thorough review of staffing patterns and O&M studies and reviewing systems and procedures to optimize outputs and outcomes of public expenditure. The Department is also coordinating matters concerning the Ministry of Finance including Parliament-related work of the Ministry. The Department has under its administrative control the National Institute of Financial Management (NIFM), Faridabad.

The business allocated to the Department of Expenditure is carried out through its Establishment Division, Plan Finance I and II Divisions, Finance Commission Division, Staff Inspection Unit, Cost Accounts Branch, Controller General of Accounts, and the Central Pension Accounting.

Dr. T. V. Somanathan is the current secretary of this department.[7]

Department of Revenue

The Department of Revenue functions under the overall direction and control of the Secretary (Revenue). It exercises control in respect of matters relating to all the Direct and Indirect Union Taxes through two statutory Boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). Each Board is headed by a Chairman who is also ex officio Special Secretary to the Government of India (Secretary level). Matters relating to the levy and collection of all Direct taxes are looked after by the CBDT whereas those relating to levy and collection of Customs and Central Excise duties and other Indirect taxes fall within the purview of the CBIC. The two Boards were constituted under the Central Board of Revenue Act, 1963. At present, the CBDT has six Members and the CBIC has five Members. The Members are also ex officio Secretaries to the Government of India. Members of CBDT are as follows:

  1. Member (Income Tax)
  2. Member (Legislation and Computerisation)
  3. Member (Revenue)
  4. Member (Personnel & Vigilance)
  5. Member (Investigation)
  6. Member (Audit & Judicial)

Ajay Bhushan Pandey is the current secretary of this department.[8]

Department of Financial Services

The Department of Financial Services covers Banks, Insurance, and Financial Services provided by various government agencies and private corporations. It also covers pension reforms and Industrial Finance and Micro, Small and Medium Enterprise. It started the Pradhan Mantri Jan Dhan Yojana.

PFRDA, Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body which also works under this department.

Shri Debasish Panda is the current secretary of this department.[9]

Department of Investment and Public Asset Management

The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management or 'DIPAM', a decision aimed at the proper management of Centre's investments in equity including its disinvestment in central public sector undertakings. Finance Minister Arun Jaitley had announced the renaming of the Department of Disinvestment in his budget speech for 2016-17. Initially set up as an independent ministry (The Ministry of Disinvestment) in December 1999, the Department of Disinvestments came into existence in May 2004 when the ministry was turned into a department of the Ministry of Finance. The department took up all the functions of the erstwhile ministry which broadly was responsible for a systematic policy approach to disinvestment and privatisation of Public Sector Units (PSUs).

Tuhin Kanta Pandey is the current secretary of this department.[10]

gollark: Heav suggested submitting an entry containing pro-esoserver propaganda which wouldn't run without it, but that seems vaguely petty.
gollark: Oh, it's actually very easy.
gollark: What *is* that?
gollark: I blame endianness, myself, somehow.
gollark: Our agents within Whitehall will prompt him for comment.

See also

References
  1. Yadav, J.P. (22 June 2018). "Jittery Jaitley on overdrive". The Telegraph (Calcutta). Retrieved 11 November 2018.
  2. "Home | Ministry of Finance | GoI". www.finmin.nic.in. Retrieved 16 March 2020.
  3. Bharadwaj. Study Package For Clat. Tata McGraw-Hill Education. p. 248. ISBN 978-0-07-069937-3.
  4. "About Ministry". Ministry of Finance, Government of India. Retrieved 15 January 2018.
  5. "Archived copy". Archived from the original on 28 August 2011. Retrieved 16 May 2011.CS1 maint: archived copy as title (link)
  6. "Meet the Secretary | Department of Economic Affairs | MoF | GoI". dea.gov.in. Retrieved 3 March 2020.
  7. "Who's Who".
  8. "Revenue Secretary". Department of Revenue, Government of India. Retrieved 15 January 2018.
  9. "About the Department".
  10. "Who's who". Department of Investment and Public Asset Management. Retrieved 15 January 2018.
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