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A Study on Financial
March 3, 2010
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Perspectives
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A Study on Financial Administration India
Perspectives.

Abstract

The study mainy for the administration of the various financial rules
and regulations including those relating to to the condition of services
of the government, employees, administrative matter relating to the
audit and accounts depatments,institutes and organizational
establishments and financial frame work relating to the depatments
and ministry , departmental expenditure and revenue generation and
development .the concept mainy works with the division of economic
affairs internal and external matters. The economic division advises
the department on question of economic policy, works with the criteria
of economic survey , economic classification, and planning of public
finance.

Broadly speaking there are two main type of administrative controls (1)
the internal control , (2) external control, internal control those are
which fitted into administrative machinery and itself and work
automatically with the moment of the machinery and external control
those which are fitted out side of the administrative machinery and
constitute invariably and makes provision for them

I . An Overview

The origin of the financial ministry in india goes back to the year 1810
when a separate finance department was created out of the public
department. But a separate secretary for a finance department was
appointed in 1843. in 1879 the finance department was redesignated
as the Department of Finance and Commerce which designation
continued upto 1905 when it was renamed as Department of Finance.
With the constitutional changes bougt about by government of india
act, in 1919 the finance department was reorganized in to seven
branches viz., General Finance, Revenue, currency, and banking ,
salaries, allowances, civil accounts, army finance, and military
accounts, the Auditor-General was assigned to the statutory status. ,in
1955 it was reorganized into four departments .

( I ) Department of Economic Affairs ,

( ii ) Department of Revenue ,
( iii) Department of Expenditure ,

(iv ) Department of Company Law Administration .

Objective ; The main purpose of study is to examine the performance


of and procedures in a area of corporate governance , public sector
banks and focus on quality of Financial Administration

II. Methodology

The present study is a case method of research . the relevant data


have been collected from secondary source comprising of reports of
Economic survey of india , RBI bulletin,
Global Financial stability Report, Report on trend and progress of
banking in india,various reports and journals and magazines like small
and medium enterprises in global perspective , new century
publication , new Delhi , DIC prospective plan of 2005-06 glabal
corporate environmentatalism , asian book pvt, ltd new delhi. Reports
on trend and progress of banking in india,2004-2007 www.
Bankingreport.rbi.org.in, the information browsed from the internet
from the website and other related banking industry agencies.

Nature and importance of Financial Administration

Having completed the structure of Indian administrative vessel and


provided it with a well trained crew, we have to supply ir a motive
power so as to enable it to move, the public finance is, in fact an
integral part of administrative act, says mr. white, has its financial
implications either creating a charge on treasury or making a
contribution to it. Nothing can be done without expenditureof the
money . public finance has several aspects , such as public revenue
and public expenditure, public debt, and balancing the budgetfiscal
policy and financial administration., etc

III . Functions of Finance Ministry

The Ministry of Finance is responsible for the following functions

i) The administration of finance of the central government and


dealing with financial matters affecting the country as a whole
ii) Raising the necessary revenues for carrying on the
administration and regulating the taxation and borrowing
policies of the government

.
iii) The administration of problem relating to the banking and
currencu, and in consulation with the ministries concerned
arranging for the proper utilization, of the countries foriegn
exchange resources

iv) Controlling the entire expenditure of government in co


operation with the administrative ministries and departments
concerned.

IV. Organisation of the Ministry of Finance

The Ministry of Finance is under the charge of the a Ministry of the


cabinet rank,, he is assisted by a minister of state and deputy
minister . the ministry at present is organized into four departments;

I. Department of Revenue and Insurance. This Department


responsible for all matters relating to central board of revenue
. custom, income tax, central excise, sales tax, insurance,
stamp duties on bill of exchange, cheques and promissory
notes bills of lading, letter of credit transfer of shares,
debenture and foreign exchange. It also advise the
government on fiscal matters

II. Department of Expenditure. This Depatrment responsible


for financial rules and regulations , delegation of financial
power , financial sanctions relating to all offices of the govt of
india and advise to the ministries and government on
planning and development and bureau of public enterprises.

III. Department of Economic Affairs. The department of


economic affairs of Ministry of Finance , headed by secretary,
is one of the most important department, it prepares the
government budget, makes periodic assessment of foreign
exchange needs and resources to mobilize allocate
resources.
IV. Department of Banking. This Department was created in
august, 1969, as a follow up nationalisationof the 14 major
commercial banks in the country that directly concerned with
Economic Affairs

A ) The Budget system in india

In india , the budget is called the” Annual Financial Statement” , unlike


France and UK, I ndia does not have one budget for the whole country
but has a number of budgets. The state government havethiere own
separate budgets, and union government its own.but the union
government itself has two budgets viz, General budget and Railway
budget the Railway budget deals with the estimate of the Railway
Ministry and , while the General Budget deals with the estimates of all
other central agencies,

B ) Indian Financial System

Our financial system is a complete centralization of the Audit and


Accounts functions, firstly, Audit and Accounts are united in one and
the same department is called the Indian Audit and Accounts
department and secondly , this Department is responsiblefor the Audit
and Accountsof the union as well as Governments.it is placed and
under the control of the Auditor – General of indiawho is constitutional
authority and independent of Executive Branch.

V. Analysis of India Union Budget 2009-10

The Indian Union Budget 2009-10 has been presented in the


parliament by finance minister Mr.Pranab Mukherjee. Union Budget is
one of the important events which was being awaited eagerly by
everyone especially the traders and the investors in the stock markets.
Here we bring the complete analysis of the Union budget 2009-10 as it
happens live.The budget had to maintain a tough balance between
fiscal deficit and the measures taken to revive the economy to come
out of the crisis soon. Here are some of the highlights of the Union
Budget 2009-10
o One of the major highlights of the union budget 2009-10 is that the
Government has increased its allocation to rural job scheme by Rs
39,000 crores or 144% rise. Mr ukherjee said NREGA (National Rural
Employment Guarantee Act) was a huge success and the Govt will
provide Rs 100/day to the rural people.

o The other highlight of the Union budget 2009-10 is that it lays much
emphasis on the Infrastructure development. The allocation for
National Highways Development Programme (NHDP) and NHAI has
been increased by 23% in this fiscal. Railways also to get Rs 15,000
crores which was Rs 10,000 crores in the interim budget.

o As far as disinvestment goes union budget 2009-10 has allocated Rs


1120 towards disinvestment proceeds.The govt will now hold 51%
in the public sector undertakings. Sectors like banks, insurance will
remain in public sector and they will be given capital infusion to
recover from the current scenario.* India’s GDP has fallen to 6.7% in
the fiscal year ending 2008-09. Finance minister has said that the
Govt’s main goal is to bring back the GDP growth rates to 9% as
soon as possible. The fiscal deficit of the country now stands at
6.8% of GDP and is highest in the last 2 decades.

Conclussion and suggestion ;

1. Such planning must be based upon the through research ,


through national needs and resources and also of the
conditions of the governance internal and external matter of
the country, Economically , the world today is a single
composite unit.
2. At slight change in the economy of the company has far
reaching parts of the world, thus the concept of globalization

3. Hence much fo the budget planning of the future will flow


from statistical machines which constantly tabulate the flow
of information from the remote corner of the world.

VI . References ;

1. Money and Banking centre for Monitoring India Economy,


Rajiv Rajan Reserve Bank of India occasional papaers.
2006-07,

2. Report and Trends and Progress of banking in india,


2004-07. www.bankreport.rbi.org.in

3. India Accounting Reviews, December 2007

4. Judge Ahluwalia . , Oxford University Press , Calcutta.

5. Indian Union Budget 2009-10, parliament of india, Ministry of


Finance.