MINISTRY OF

FINANCE
GOVERNMENT OF INDIA
Submitted To, Prof Raimand Simon Submitted By, Ginu L Prakash Subin Louis

FINANCE MINISTER
CHIDAMBARAM SHRI PALANIAPPAN

The Ministry of Finance is an important ministry within the Government of India. Concerned with: Taxation, Financial legislation, Financial institutions, Capital markets, Centre and state finances, and the Union Budget.

Key Documents: Union Budget Economic Survey R. K. Shanmukham Chetty was the first Finance Minister of independent India.

The Union Finance Ministry of India comprises five departments.

1. 2. 3. 4. 5.

Department of Economic Affairs Department of Expenditure Department of Revenue Department of Financial Services Department of Disinvestments

1. Department of Economic Affairs

Formulate and monitor country's economic policies and programmes. A principal responsibility - preparation of the Union Budget annually. Formulation and monitoring of macroeconomic policies

Monitoring and raising of external resources through sovereign borrowings abroad, foreign investments and monitoring foreign exchange resources including balance of payments;
Production of bank notes (Rs1)and coins of various denominations, postal stationery, postal stamps; and Cadre management, career planning and training of the Indian Economic Service (IES).

2. Department of Expenditure
Department for overseeing the public financial management system in the Central Government .

The principal activities of the Department include

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, 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.

3. Department of 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 Excise and Customs (CBEC). 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 CBEC.

4. Department of Financial Services The Department of Financial Services covers Banks, Insurance and

Financial Services provided by various government agencies and private corporations.

pension reforms and

Industrial Finance and Micro, Small and Medium Enterprise.

5. Department of Disinvestments 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 systematic policy approach to disinvestment and

privatisation of Public Sector Units (PSUs).

Thank You..!