Ministry of Finance (India)

Overview

The Ministry of Finance (IAST: Vitta Mantrālaya) is a ministry of the Government of India concerned with the economy of India, serving as the Treasury of India. In particular, it concerns itself with taxation, financial legislation, financial institutions, capital markets, currency regulation, banking service, centre and state finances, and the Union Budget. The Ministry of Finance is the apex controlling authority of four central civil services namely Indian Revenue Service, Indian Audit and Accounts Service, Indian Economic Service and Indian Civil Accounts Service. It is also the apex controlling authority of one of the central commerce services namely Indian Cost and Management Accounts Service.

History

Sir Ramasamy Chetty Kandasamy Shanmukham Chetty KCIE (17 October 1892 – 5 May 1953) was the first Finance Minister of independent India. He presented the first budget of independent India on 26 November 1947.

Department of Economic Affairs

The Department of Economic Affairs is the nodal agency of the Union Government to formulate and monitor country's economic policies and programmes having a bearing on domestic and international aspects of economic management. A principal responsibility of this department is the preparation and presentation of the Union Budget to the parliament and budget for the state Governments under President's rule and union territory administrations. Other main functions include:

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; 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; 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). The Foreign Investment Promotion Board (FIPB), housed in the Department of Economic Affairs, Ministry of Finance, was an inter-ministerial body, responsible for processing of FDI proposals and making recommendations for Government approval. FIPB was abolished by then-Finance Minister Arun Jaitley during the 2017-2018 budget speech in the Lok Sabha. Anuradha Thakur is the current secretary of this department.

Department of Expenditure

The Department of Expenditure is the nodal department for overseeing the public financial management system"Official Website". in the Central Government and matters connected with the state finances. The principal activities of the department 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, 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 organizational re-engineering thorough 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. Vumlunmang Vualnam is the current secretary of this department.

Department of Revenue

The Department of Revenue function 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 Indirect Taxes and Customs (CBIC). 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 GST, Customs Duty, Central Excise duties and other Indirect taxes fall within the purview of the CBIC. The two Boards were constituted under the Central Board of Revenue Act, 1963. At present, the CBDT has six Members and the CBIC also has six Members. The Members are also ex officio Secretaries to the Government of India. Members of CBDT are as follows:

Member (Income Tax) Member (Legislation and Computerisation) Member (Revenue) Member (Personnel & Vigilance) Member (Investigation) Member (Audit & Judicial) The Central Board of Indirect Taxes & Customs (CBIC) is headed by a chairperson and consists of six members:

Member (Customs) Member (Tax Policy & Legal) Member (GST, Central Excise & Service Tax) Member (Administration & Vigilance) Member (IT & Taxpayer Services) Member (Compliance Management) Arvind Shrivastava is the current secretary of this department.

Department of Financial Services

The Department of Financial Services covers banking, 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 enterprises. It started the Pradhan Mantri Jan Dhan Yojana. Sanjay Lohiya is the current secretary of this department. This department has ownership over the following central government establishments:

Regulatory Bodies

Reserve Bank of India (RBI) National Bank for Agriculture and Rural Development (NABARD) International Financial Services Centres Authority (IFSCA) Securities and Exchange Board of India (SEBI) Insurance Regulatory and Development Authority of India (IRDAI) Pension Fund Regulatory and Development Authority (PFRDAI)

Recruitment Bodies

Institute of Banking Personnel Selection (IBPS)

National Apex Bodies

Indian Institute of Banking and Finance (IIBF) Insurance Institute of India Institute of Actuaries of India

All India Financial Institutions

National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) Export Import Bank (EXIM Bank) National Bank for Financing Infrastructure and Development (NaBFID)

Development Finance Institution

Industrial Development Bank of India (IDBI) Industrial Finance Corporation of India (IFCI) Unit Trust of India (UTI) India Infrastructure Finance Company Limited (IIFCL) IIFCL Projects Limited, a wholly owned subsidiary of IIFCL Agricultural Finance Corporation of India (AFCI) National Bank Financing Infrastructure and Development

Joint ventures

Hardicon Limited, a joint venture of Public Sector Banks and Financial Institutions NITCON Limited