FINANCE

Ministry of Finance is responsible for administration of finances of the Govt. It is concerned with all
economic and financial matters affecting the country as a whole including mobilization of resources
for development and other purposes.
It regulates expenditure of the Govt. including transfer of resources to the states.
It has 5 Department
o Economic Affairs
o Expenditure
o Revenue
o Disinvestment
o Financial Services

DEPARTMENT OF ECONOMIC AFFAIRS

Price supports policies for agricultural commodities are announced with a view to encourage higher
investment and production and to safeguard the interest of consumers by making available supplies
at reasonable prices.
Minimum Support Price (MSP) has been raised to ensure remunerative prices to the growers and
thereby enhancing the production of agricultural crops.
Index for eight core industries (Coal, crude oil, natural gas, petroleum refinery products, fertilizers,
steel, cement and electricity)
Terms can be refereed in Survey or Economy books (LAF, CRR, CMB, MSF, Special Repo Window,
Balance of Payment, Foreign Exchange Reserve, External Debt , World Bank)

Social Sector Development

Mentioning the name of the scheme as in IYB its only data and in survey I guess you will get all
information about these otherwise Google (MNERGA, PMGSY, IAY, NRLM, SJSRY, NHM, MDM, RSBY)
Small Savings Schemes currently in forces are
o PO Savings Account, Time Deposits (1,2,3 & 5 years), Recurring Deposits, Monthly
Account
o Senior Citizens Savings Scheme
o National Savings Certificate (8th issues) & (9th Issue)
o Public Provident Fund
In order to account for all the monetary transactions under small savings schemes of the Central
Govt. under one umbrella National Small Savings Fund was setup in Public Account of India. They
are invested in the special securtites of various States/UT/CG.
Increase the first time investor to invest in listed mutual funds and equity for three successive years
from one; and income limit raised from Rs 10laks to Rs 12lakh for Rajiv Gandhi Equity Saving Scheme

DEPARTMENT OF EXPENDITURE

The Office of the Chief Advisor Cost (CAC) is responsible for advising the Ministries and Govt.
Undertakings on cost accounts matters and to undertake cost investigation work on their behalf.
The National Committee on Direct Cash transfer chaired by PM, is to be assisted by the executive
Committee on Secretary, PC, Mission Mode Committees, namely Financial Inclusion Committee,
Technology Committee and Implementation Committee on Electronics Transfer of Benefits.
National Institute of Financial Management in 1993, would be training institute for officers recruited
by UPSC through annual Civil Service Examination and allocating to various service responsible for
managing senior and top management post dealing with accounts and finance in the govt.

DEPARTMENT OF REVENUE

It functions under the overall direction and control of the Secretary

It exercise control in respect of matters relating to all the Direct and Indirect Union Taxes through 2
Statutory boards namely,
o The Central Board of Direct Taxes (CBDT)
Matters relating to the levy and collection of all Direct Taxes are looked
o Central Board of Excise and Customs (CBEC).
Relating to levy and collection of Customs and Central Excise duties, Service Tax
and other Indirect taxes.
Tax on sale or purchase of goods within a State is a State subject.
VAT for State and CST for Centre. (Economy)
Main recommendation for GST are
o Inclusion of petrol and petroleum products and alcoholic liquor within definition of GST
o Dispute resolution among States and Between Union and States to be done by GST
council
o Abolition of Entry Tax
o Establishment of a GST compensation Fund through a Const. Amendment

Distribution of remaining proceeds of GST amongst States and Union at the end of
Financial year
o Viability of Modified Bank Model for settlement of proceeds arising out of inter-state
Trade
o Establishment of GST monitoring cell etc.
CBEC deals with tasks of formulation of policy concerning levy and collection of Customs and Central
Excise duties, Service tax, prevention of smuggling and evasion of duties and all administrative
matters relating to Customs, Central Excide and Service Tax formations. It also ensures taxes on
foreign and inland travel are administrated as per the law and the collection agencies deposit the
taxes collected to the public exchequer promptly.
o

Customs and Central Excise Settlement Commission objective is to expedite payments of Customs
and Excise duties involved in disputes , by avoiding costly and time consuming litigation process and
to give an opportunity for tax payers who have evaded payment of duty to come clean.

Womens Bank- Bharatiya Mahila Bank Limited

Setup Indias first Womens Bank to address the gender related aspects of financial access to all
sections of women, empowerment of women and financial inclusion
To achieve economic empowerment, women need equal access to economic institutions and
control of assets.
Control over assets is essential to access finance and vice versa.
First step towards economic empowerment is to provide equal access to financial services to
women while addressing the problem of lack of collateral
This would help promote both asset ownership y women and entrepreneurship which would
increase employment opportunities for them.
Regional Rural Banks

To strengthen the RRB for playing a greater role in agriculture, rural lending and financial inclusion ,
the following measures areo All Branches of RRB are on CBS platform
o Recapitalization support to 40 RRB to enhance their CRAR to 9%.
o Kisan Credit Card (1998), as a innovative credit delivery system aiming at adequate and
timely credit support from the banking system to the farmers for their cultivation needs
including purchase of inputs in a flexible, convenient and cost effective manner. This
scheme is being implemented by all District Central Cooperative Banks, RRB, and PSC
Banks. A new scheme for KCC has been circulated by RBI and NABARD which provides
for KCC as an ATM card
o Rural Infra. Development Fund (RIDF) - Setup in 1995-96 within NABARD by the way of
deposits from SC Banks operating in India from the shortfall in their agricultural/priority
sector/ weaker sections lending.

Export Import Bank of India

Exim bank offers a comprehensive range of lending and service/advisory programmes, aimed at
aiding the globalization efforts of Indian companies. This enables the Bank to promote inclusion of a
large cross section of India exporter in the opportunities bring thrown up by globalization.

Rural Housing Fund

Setup in 2008-09 to enable primary lending institutions to access funds for extending housing
finance to targeted groups in rural areas at competitive rates.

Pension Sector

National Pension System (NPS) , all the new recruits to the Govt except armed forces. The features
of the NPS design are self-sustainability, portability and scalability. It provides various investment
option and choices to individual.
PFRDA is regulatory body, consolidating the initiatives for full NPS and expanding the reach of the
NPS distribution network.

Swavalamban Scheme

To encourage workers in the unorganized sector to save voluntarily for their old age, called
Swavalamban Scheme. It is a co-contributory pension scheme whereby the Central Govt would
contribute a sum of Rs 1000 per annum in each eligible NPS account opened with a saving of Rs
1000 to Rs 12000 per annum.

Obligations towards the rural and social sectors; micro insurance and licensing of agents corporate
agents, brokers and third party administrators. IRDA has also laid down the regulatory framework for
registration of insurance companies, maintenance of solvency margin, investments and financial
reporting requirements.
Social Security Scheme Aam Aadmi BIma Yojana (AABY)
For the benefit of the weaker sections of the society, GOI floated a highly subsidized insurance
scheme, AABY administrated by LIC.
BPL and marginally above poverty line citizens are covered under 48 identified occupations.
Scheme provides death cover of Rs 30000 in case of natural death ; in Death or total disability
(including loss of 2 limbs/2 eyes) due to accident, a sum of Rs 37500 is payable to the
nominee/beneficiary.
All these benefits are paid for nominal premium of Rs 200 per member per annum out of which Rs
100 is borne by Central Govt. through Social Security Fund maintained through LIC and balance
borne by member of Nodal agency and Central/State govt.
Add-on benefits of Scholarship at the rate of Rs 1200 per annum per child for 2 children per family
of the insured members studying 9th to 12th (including ITI).
DEPARTMENT OF DISINVESTMENT

Govt had decided to list all profitable CPSE on the stock exchanges
Market capitalization of CPSEs reflects the markets view about the management of CPSEs and is
thus a good barometer of the efficiency of CPSEs and fall in the market capitalization exerts pressure
on the management to perform better to the expectations of the investors for higher wealth
creation.
Main objective of the disinvestment policy is to develop peoples ownership of CPSE so as to let
them directly share their wealth and prosperity. The policy ensures that Govt. equity does not fall
below 51% and Govt. retains management control.
All unlisted CPSUs having positive net worth, no accumulated losses and having earned net profit for
three preceding consecutive years, are to be listed through public offerings out of Govt.
shareholding or issue of fresh equity by the company or a combination of both.
National Investment Fund into which the realization from sale of minority shareholding of the Govt.
in profitable CPSEs would be channelized. The Fund would maintain outside the CFI. The income of
the funds would be used for the following broad investment objectiveso Investment in social sector projects which promote education, health and employment.
In 2013, Govt. approved restructuring of the NIF and decided that the disinvestment proceeds with
effect from the fiscal year 2013-14 will be credited to the existing Public Account under the head NIF
and they would remain there until withdrawn, invested for the approved purpose.