Finance
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
mobilization of resources for development and other purposes. It regulates expenditure of the
government including transfer of resources to the states. It is an important ministry within the
government concerned with the economy of the country, serving as the Indian treasury
department. In particular, it concerns itself with taxation, financial legislation, financial
institutions, capital markets, centre and state finances, and the Union Budget. The Ministry is
also the cadre controlling authority of the Indian Revenue Service, Indian Economic Service,
Indian Cost Accounts Service and Indian Civil Accounts Service.
This Ministry consists of five departments, namely, (i) Economic Affairs, (ii) Expenditure,
(iii) Revenue, (iv) Investment and Public Asset Management; and (v) Financial Services.
Relevant Website: www.finmin.nic.in
Department of Economic Affairs
The Department of Economic Affairs is the nodal agency of the 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 (including Railway Budget) to the
Parliament and budget for the state governments under President’s Rule and union territory
administrations. Other 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; 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 (IBS).
The Department, 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 specialized International
Organizations like FAO, ILO, UNIDO and except under International bilateral specific
agreement in the field of science and technology, culture and education are also monitored by
this Department.
Department of Economic Affairs (DEA) is divided into fourteen functional Divisions,
namely: (i) Administration and Coordination Division; (ii) Aid, Accounts and Audit Division;
(iii) Bilateral Cooperation Division; (iv) Budget Division; (v) Coin and Currency Division; (vi)
Economic Division; (vii) Financial Market Division; (viii) Financial Sector Reforms and
Legislation Division; (ix) Financial Stability Division; (x) Infrastructure Policy and Finance
Division; (xi) International Economic Relations Division; (xii) Investment Division;
(xiii)Multilateral Institutions Division;and (xiv) Statistical and Data Analysis and Monitoring
Division. The Department of Economic Affairs is also responsible for preparation and