LAW OF TORTS

ASSIGNMENT
BRIEF OVERVIEW OF FINANCE
MINISTRY OF INDIA

SUBMITTED BY:
SAUMYA
SABYASANCHI
MANJULA
HARNEET
BHAWNA
Finance Ministry
The Ministry of Finance is responsible for administration of finances of the government.
It is concerned with all economic and financial matters affecting the country as a whole
including mobilisation of resources for development and other purposes. It regulates
expenditure of the government including transfer of resources to the states.
The Ministry comprises five departments:
1. ECONOMIC AFFAIRS
2. EXPENDITURE
3. REVENUE
4. DISINVESTMENT
5. FINANCIAL SERVICES

HISTORY
1. Formed: 29 October 1946
2. First Finance Minister of independent India : R. K. Shanmukham Chetty
3. First budget of independent India presented on : November 26, 1947
BRIEF OVERVIEW
1. Jurisdiction: Government of India
2. Headquarters: Cabinet Secretariat, Raisina Hill, New Delhi
3. Minister Responsible : Finance Minister (Arun Jaitey)
4. Agency executive : The Minister of State (Revenue) , Minister of State
(EB&I)
5. Key Documents: Union Budget, Economic Survey
DEPARTMENTS
ECONOMIC AFFAIRS
The DEA inter alia monitors current economic trends and advises the government on all
matters having bearing on internal and external aspects of economic management including
prices, credit, fiscal and monetary policy and investment regulations.
All the external, financial and technical assistance received by India, except through
specialised agencies and except under international bilateral specific agreement in the field of
S&T, culture and education are also monitored by this department. The DEA is also
responsible for preparation and presentation to the Parliament of Central Budget and the
Budgets of the State Governments under Presidents rule and Union Territory
Administrations.
The main division of DEA are:
a. Finance Division
b. Budget Division including Financial Responsibility and Budget Mngmt.
c. Capital Market
d. Bilateral Cooperation and Administration
e. Multilateral Institutions
f. Multilateral Relations and Administration
g. Controller of Aid, Accounts and Audit.
h. Economic Division
i. Directorate of Currency
The Directorate of Currency has the administrative control of the Security Printing and
Minting Corporation of India Ltd. , a wholly owned GOI Corporation that manages GOI
Mints, Currency Presses, Security Presses and Security Paper Mill. In addition to formulating
and executing policies and programmes relating to designs/ security features of banknotes
and coins and issue of commemorative coins, the DoC has also been mandated to conduct

R&D activities in this area and indigenisation of all materials required for production of
banknotes and other security products.
OTHER FUNCTIONS:
1. 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;
2. 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;
3. 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).

ANNUAL BUDGET
The Union Budget of India, also called the General Budget, is presented each year on the last
working day of February by the Finance Minister of India in Parliament.
ANNUAL FINANCIAL STATEMENT
Under Article 112 of the Constitution, a statement of estimated receipts and expenditure of
the GOI has to be laid before Parliament in respect of every financial year which runs from
1st April to 31st March.
This statement titled Annual Financial Statement is the main budget document. It shows the
receipts and payments of government under the 3 parts in which Government accounts are
kept:
a. Consolidated Fund
b. Contingency Fund
c. Public Accounts
All revenues received by Government, loans raised by it, and also its receipts from
recoveries of loans granted by it from the Consolidated Fund. All expenditure of Government
is incurred from the Consolidated Fund and no amount can be withdrawn from the Fund
without authorisation from Parliament.
Occasions may arise when Givt. may have to meet urgent unforeseen expenditure pending
authorisation from Parliament. The Contingency Fund is an imprest placed at the disposal of
the President to incur such expenditure.Parliamentary approval for such expenditure and for
withdrawal of an equivalent amount from the Consolidated Fund is subsequently obtained
and the amount spent from Contingency Fund is subsequently recouped to the Fund. The
corpus of the Fund authorised by the Parliament, at present is 500 crore.

Besides the normal receipts and expenditure of the Govt. which relate to the Consolidated
Fund, certain other transactions enter Govt. accounts in respect of which Govt. acts more as a
banker, for example, transactions relating to PFs, small saving collections, other deposits etc.
The money thus received are kept in the Public Account and the connected disbursements are
also made therefrom.Parliamentary authorisation for such payments are not required.

DEPARTMENT OF EXPENDITURE
The Department of Expenditure is the nodal Department for overseeing the public financial
management system in the Central Government and matters connected with the finances.
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/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
organisational re-engineering through 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.

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 Excise and Customs (CBEC). 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 CBEC. The two Boards were

constituted under the Central Board of Revenue Act, 1963. At present, the CBDT has six
Members and the CBEC has five Members.
The Members are also ex officio Secretaries to the Government of India. Members of CBDT
are as follows:
1.
2.
3.
4.
5.
6.

Member (Income Tax)

Member (Legislation and Computerisation)
Member (Revenue)
Member (Personnel & Vigilance)
Member (Investigation)
Member (Audit & Judicial)

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 in 2014.
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).