Department of Finance (Kerala)

Overview

The Department of Finance is a key ministry that manages the state finances and economy of Kerala. The department is headed by a senior minister who has cabinet ranking as per Indian Cabinet Protocol Laws. The state assembly rules of 1966 ranks the department and its minister as number 3 in official rankings after Chief Minister and Opposition Leader. The finance department manages and regulates the state economy and finances through taxation, financial legislation, financial institutions, capital markets, center and state finances, and the State Budget. industrialists, temple bodies and religious congregations for carrying out economic activities in return for fixed revenue. Prior to forming finance department, it was Pandara (also pronounced as Bhandra Dept- Malayalam name of Revenue dept) managing state finances. When separate finance department was formed to formulate state financial policies, expenditure controls, investment opportunities and controlling fiscal deficits, the tax collection and revenue remained as a separate body itself.

Functions

Major functions of the Finance Department include the following

Framing of rules regulating the pay, leave and pension of persons in the service of the Government and rules regulating the number, gradings or cadre and emoluments of posts under the Government and also be responsible for seeing that these rules are properly applied. Finance Department is responsible for all matters relative to financial procedure and the application of the principles of sound finance. Advise on the financial aspect of all transactions relating to loans granted by the Government. Safety and proper employment of Famine Relief Fund and other special funds, if any, and for the administration of Provident Funds, Deposits and Advances. Examine and report on all proposals for the imposition, increase, reduction or abolition of taxes, duties, cesses or fees. Examine and report on all proposals for borrowing or giving of a guarantee by the Government and raise such loans as have been duly authorised, Finance Department shall be in charge of all matters relating to the service of loans or the discharge of guarantees. Ensure that proper financial rules are framed for the guidance of other departments and that suitable accounts, including commercial accounts, whatever necessary, are maintained by other departments and establishments subordinate to them. Prepare an estimate of the total receipts and disbursements of the State in each year and watching the state of the Government's balances and for their ways and means operations. Preparation of Budgets and supplementary estimates. Advise departments responsible for the collection of revenue regarding the progress of collection and methods of collection employed.

About Department

The Department is managed by a senior Minister who has a Cabinet ranking. The Current minister is V.D. Satheesan, the Chief Minister of Kerala. The department is assisted by Finance Secretary and 17 additional secretaries. The Finance Secretary is the senior Indian Administrative Service officer, and has the rank of Additional Chief Secretary to Government.

The Finance Department is headed by the Finance Secretary, who is assisted by the Secretary (Finance Resources) and the Secretary (Finance Expenditure), both Indian Administrative Service (IAS) officers, along with a Special Secretary, 17 Additional Secretaries, the Chief Technical Examiner, 33 Joint Secretaries, 26 Deputy Secretaries, and several Under Secretaries and Section Officers. At the district level, the department has a District Finance Inspection Officer (DFIO) in each of Kerala's 14 districts.

Sub departments

Department of Finance has following sub-divisions;

Expenditures Budget Resources The Following are classified as line departments of Finance Department, in which they have direct control;

National Savings Department Treasuries Department Kerala State Audit Department Kerala State Insurance Department The Department of Finance also controls Kerala Financial Corporation, an important agency in leading finance and credit for industrial and agricultural projects for private and public. Te Finance Department controls the major functions like Budget, Treasuries, Local Fund Audit, Financial Enterprises, State Insurance, etc.

Special wings

Finance (Inspection – Non-Technical) Wing – Non-technical financial inspections, audits and examinations of government departments, offices and financial procedures. Finance (Inspection – Technical) Wing – Technical inspections of projects and expenditure. Provides technical oversight, inspections and advice on government public works and projects. Finance (IT Division) Department – Finance IT and e-governance systems.

List of Finance Ministers

References:

See also

Department of Taxes (Kerala) Department of Revenue (Kerala) Department of Home (Kerala)

Sources

http://www.finance.kerala.gov.in (Official Website of the Finance Department, Kerala) https://web.archive.org/web/20060118031516/http://www.kerala.gov.in/ (Official website of Govt. of Kerala)