Ministry of Finance
The Ministry of Finance is a ministry within the Government of India concerned with The Indian Treasury Department oversees the country’s economy. It focuses on taxes, financial laws, financial institutions, capital markets, central and state finances, and the Union Budget.
Department of Economic Affairs
The Department of Economic Affairs is the Union Government’s nodal department for developing and monitoring the country’s economic policies and programs that have an impact on both domestic and international economic management. This Department is primarily responsible for preparing and presenting the Union Budget to Parliament, as well as budgets for state governments operating under President’s Rule and union territory administrations. Other important tasks include formulating and monitoring macroeconomic policies, such as fiscal policy, public finance, inflation, debt management, and capital market operations, including stock exchanges. In this context, it looks at ways to raise internal resources through taxation, market borrowing, and mobilization of small savings; monitor and raise external resources through multilateral and bilateral Official Development Assistance, sovereign borrowings abroad, foreign investments, and monitoring foreign exchange resources including balance of payments; and produce bank notes and coins of various denominations, postal stationery, and postal stamps.
The Foreign Investment Promotion Board (FIPB), which was situated in the Department of Economic Affairs of the Ministry of Finance, was an inter-ministerial organization in charge of reviewing FDI requests and providing recommendations for government approval. The FIPB has been disbanded, as stated by Finance Minister Arun Jaitley during his 2017-2018 budget address in the Lok Sabha.
The department of expenditure
The Department of Expenditure is responsible for supervising the Central Government’s public financial management system (PFMS) and other financial concerns. The Department’s primary activities 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, implementing the recommendations of the Finance and Central Pay Commissions, overseeing expenditure management in the Central Ministries/Departments through the interface with the Financial Advisors, and administering the Financial Rules / Regulations. The Department also coordinates topics relating the Ministry of Finance, including the Ministry’s Parliamentary activities. The National Institute of Financial Management (NIFM) in Faridabad is under the Department’s administrative responsibility.
The Department of Expenditure manages its operations via the Establishment Division, Plan Finance I and II Divisions, Finance Commission Division, Staff Inspection Unit, Cost Accounts Branch, Controller General of Accounts, and Central Pension Accounting.
Department of Revenue
The Secretary (Revenue) provides overall direction and supervision for the Department of Revenue. It exerts authority over all Direct and Indirect Union Taxes via two statutory boards: the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). Each Board is led by a Chairman who also serves as the ex officio Special Secretary to the Government of India (Secretary level). The CBDT is responsible for the levy and collection of all direct taxes, whilst the CBIC is in charge of the levy and collection of Customs and Central Excise charges, as well as other indirect taxes. The two Boards were established under the Central Board of Revenue Act of 1963. The CBDT currently has six members, whereas the CBIC has five. The Members serve as ex officio Secretaries to the Government of India. The CBDT members are listed below:
- Member (Income tax)
- Member (Legislation and Computerization
- Member (revenue)
- Member of Personnel and Vigilance.
- Member (Investigation
- Member (Audit and Judicial
- Department of Financial Services
The Department of Financial Services oversees banks, insurance, and other financial services supplied by different government organizations and private enterprises. It also addresses pension reform, industrial finance, and micro, small, and medium-sized enterprises. It launched the Pradhan Mantri Jan Dhan Yojana.
The Pension Fund Regulatory and Development Authority (PFRDA) is a statutory agency that reports to this department.
The Department of Investment and Public Asset Management
The Department of Disinvestment has been renamed the Department of Investment and Public Asset Management, or ‘DIPAM’, in an effort to better manage the Centre’s equity investments, including disinvestment in central public sector businesses. Finance Minister Arun Jaitley announced the rebranding of the Department of Disinvestment during his 2016-17 budget address. The Department of Disinvestments was established as an independent ministry (The Ministry of Disinvestment) in December 1999 before becoming a department of the Ministry of Finance in May 2004. The department takes over all of the activities of the previous ministry, which was primarily responsible for a systematic policy approach to disinvestment and privatization of Public Sector Units (PSUs).
