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Ministry of Finance

North Block, Central Secretariat
Agency overview
Formed29 October 1946; 75 years ago (1946-10-29)
JurisdictionPrime Minister of India
HeadquartersCabinet Secretariat
Raisina Hill, New Delhi
Minister responsible
Deputy Ministers responsible
Agency executives
Child agencies
  • Department of Economic Affairs
  • Department of Expenditure
  • Department of Revenue
  • Department of Financial Services
  • Department of Investment and Public Asset Management
  • Department of Public Enterprise
Key documents
Websitefinmin.nic.in

The Ministry of Finance (IAST: Vitta Maṃtrālaya) is a 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.[1]

The Ministry of Finance is the apex controlling authority of four central civil services namely Indian Revenue Service, Indian Audit and Accounts Service, Indian Economic Service and Indian Civil Accounts Service. It is also the apex controlling authority of one of the central functionality services namely Indian Cost and Management 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.[2]


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:

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.[3]

Shri tarun bajaj is the current secretary of this department.[4]

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 state 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.[5]

Department of Revenue

The Department of Revenue function 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 GST, Customs Duty, 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)

Tarun Bajaj is the current secretary of this department, His predecessor was Ajay Bhushan Pandey.[6][7]

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.

Shri Debasish Panda is the current secretary of this department.[8]

This department has ownership over the following central government establishments.

Recruitment Bodies

National Apex Bodies

Regulatory Bodies

1. Reserve Bank of India (RBI)

2. Securities and Exchange Board of India (SEBI)

3. Insurance Regulatory and Development Authority of India (IRDAI)

4. Pension Fund Regulatory and Development Authority (PFRDAI)

All India Financial Institutions

1. National Bank for Agriculture and Rural Development (NABARD)

2. National Housing Bank (NHB)

3. Small Industries Development Bank of India (SIDBI)

4. Export Import Bank (EXIM Bank)

Development Finance Institution

(To be directly under the ownership of Department of Financial Services, Ministry of Finance, Government of India)

(To be re-nationalised from Axis Bank)

(To be nationalised)

(To be nationalised)

Central Public Sector Units

1. Nationalised Banks

Presently there are 13 nationalised banks in India.

2. Regional Rural Bank

Presently there are 43 regional rural banks in India since 1 April 2020[9]

Andhra Pradesh

Arunachal Pradesh

Assam

Bihar

Chhattisgarh

Gujarat

Haryana

Himachal Pradesh

Jammu and Kashmir

Jharkhand

Karnataka

Kerala

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Puducherry

Punjab

Rajasthan

Tamil Nadu

Telangana

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

3. Nationalised Insurance Companies

Presently there are 7 nationalised insurance companies.

4. Nationalised Financial Market Exchanges

Presently there are 28 nationalised financial market exchanges in India and currently only six are operating

Operational stock exchange
Operational Commodity Exchanges
Defunct stock exchanges

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.[12]


Department of Public Enterprises

Department of Public Enterprises which was earlier part of the Ministry of Heavy Industries and Public Enterprises will now be under Ministry of Finance. Finance Ministry will now have six departments while DPE's hereto parent ministry, the Ministry of Heavy Industries and Public Enterprises will now be called the Ministry of Heavy Industries. The shift of DPE to the Finance Ministry will help in efficient monitoring of the capital expenditure, asset monetisation and financial health of the Central Public Sector Enterprises (CPSEs).[1]

See also

References

  1. ^ "Home | Ministry of Finance | GoI". www.finmin.nic.in. Retrieved 16 March 2020.
  2. ^ Bharadwaj. Study Package For Clat. Tata McGraw-Hill Education. p. 248. ISBN 978-0-07-069937-3.
  3. ^ "Archived copy". Archived from the original on 28 August 2011. Retrieved 16 May 2011.CS1 maint: archived copy as title (link)
  4. ^ "Meet the Secretary | Department of Economic Affairs | MoF | GoI". dea.gov.in. Retrieved 3 March 2020.
  5. ^ "Who's Who".
  6. ^ "Current Affairs 2021". PendulumEdu. PendulumEdu. Retrieved 1 March 2021.
  7. ^ "Revenue Secretary". Department of Revenue, Government of India. Retrieved 15 January 2018.
  8. ^ "About the Department".
  9. ^ "list of SCB".
  10. ^ a b https://www.thehindu.com/news/cities/Hyderabad/rural-banks-to-be-merged-in-ts-ap/article27084736.ece. Missing or empty |title= (help)
  11. ^ "दैनिक जागरण: बैंकों का विलय : एक हुए UP के तीन बैंक, अब बड़ौदा यूपी बैंक नाम से जाने जाएंगे".
  12. ^ "Who's who". Department of Investment and Public Asset Management. Retrieved 15 January 2018.