The Ministry of Finance is an important ministry within the Government of India related to the economy of India, working as the Indian Treasury Department. In particular, it relates itself with taxation, financial legislation, financial institutions, capital markets, center and state finances, and the Union Budget. The Ministry of Finance is the cadre managing authority of the Indian Revenue Service, Indian Economic Service, Indian Cost Accounts Service and Indian Civil Accounts Service. Arun Jaitley is the Finance Minister of India.
The Union Finance Ministry of India consists of five departments.
Department of Economic Affairs
The Department of Economic Affairs is the apex agency of the Union Government to formulate and monitor the country’s economic policies and programmes having a bearing on domestic and international aspects of economic management. A major responsibility of this Department is the preparation and presentation of the Union Budget (covering Railway Budget) to the parliament and budget for the state Governments under President’s Rule and union territory administrations. Subhash Chandra Garg is the present secretary of this Department.
Department of Expenditure
The Department of Expenditure is the major Department for overseeing the public financial management system (PFMS) in the Central Government and matters connected with the finances. The principal activities of the Department covers pre-sanction appraisal of major schemes/projects (both Plan and non-Plan expenditure), managing 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 by monitoring of Audit comments/observations, creation 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, helping organisational re-engineering through review of staffing patterns and O&M studies and reviewing systems and procedures to optimize results and outcomes of public expenditure.
Department of Revenue
The Department of Revenue functions ambit of overall direction and control of the Secretary (Revenue). It exercises manage in respect of matters relating to all the Direct and Indirect Union Taxes by two statutory Boards namely, the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC). Each Board is led by a Chairman who is also ex officio Special Secretary to the Government of India (Secretary level). Issues relating to the levy and collection of all Direct
taxes are looked after by the CBDT whereas those concerning to levy and collection of Customs and Central Excise duties and other Indirect taxes fall within the boundary of the CBEC. The two Boards were made up of under the Central Board of Revenue Act, 1963. At present, the CBDT has six Members and the CBEC has five Members.
Department of Financial Services
The Department of Financial Services covers Banks, Insurance and Financial Services provided by different government agencies and private corporations. It also includes pension reforms and Industrial Finance and Micro, Small and Medium Enterprise. It commenced the Pradhan Mantri Jan Dhan Yojana. PFRDA, Pension Fund Regulatory and Development Authority (PFRDA) is a statutory body which also operates under this department. Rajiv Kumar is the present secretary of this department.
Department of Investment and Public Asset Management
The Department of Disinvestment has been renamed as Department of Investment and Public Asset Management or ‘DIPAM’, a decision focused at proper management of Centre’s investments in equity including its disinvestment in central public sector undertakings. Finance Minister Arun Jaitley had announced the renaming of the Department of Disinvestment in his budget speech for 2016-17.