Ministry of Finance (India)

Ministry of Finance
वित्त मंत्रालय


North Block, Central Secretariat
Agency overview
Formed 29 October 1946
Jurisdiction Government of India
Headquarters Cabinet Secretariat
Raisina Hill, New Delhi
28°36′50″N 17°12′32″E / 28.61389°N 17.20889°E / 28.61389; 17.20889
Minister responsible
Agency executive
  • , The Minister of State (Revenue)
  • , Minister of State (EB&I)
Child agencies
  • Department of Economic Affairs
  • Department of Expenditure
  • Department of Revenue
  • Department of Financial Services
  • Department of Disinvestment
Key documents
Website finmin.nic.in

The Ministry of Finance is an important ministry within the Government of India. It concerns itself with taxation, financial legislation, financial institutions, capital markets, centre and state finances, and the Union Budget.

The following cadre controlling authority of the Civil Services (including Indian Revenue Service, Indian Economic Service, Indian Cost Accounts Service and Indian Civil Accounts Service) are under the administration and supervision of the Finance Ministry.

Arun Jaitley is the current Finance Minister of India.

History

R. K. Shanmukham Chetty was the first Finance Minister of independent India. He presented the first budget of independent India on November 26, 1947.[1]

Organisational Structure

The Union Finance Ministry of India comprises five departments.

Department of Economic Affairs

The Department of Economic Affairs (DEA) 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 of the Union Budget annually (excluding the Railway Budget). Other main functions include:

Pranab Mukherjee, Former Finance Minister of India with Former US President George W. Bush .

Department of Expenditure

The Department of Expenditure is the nodal Department for overseeing the public financial management system in the Central Government and matters connected with the finances. The principal activities of the Department include 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 organisational re-engineering through 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.

Department of Revenue

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

  1. Member (Income Tax)
  2. Member (Legislation and Computerisation)
  3. Member (Revenue)
  4. Member (Personnel & Vigilance)
  5. Member (Investigation)
  6. Member (Audit & Judicial)

Department of Financial Services

The Department of Financial Services covers Banks, 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 Enterprise. It started the Pradhan Mantri Jan Dhan Yojana in 2014.

Department of Disinvestments

Initially set up as an independent ministry (The Ministry of Disinvestment) in December 1999, The Department of Disinvestments came into existence in May 2004 when the ministry was turned into a department of the Ministry of Finance. The department took up all the functions of the erstwhile ministry which broadly was responsible for systematic policy approach to disinvestment and privatisation of Public Sector Units (PSUs).

Lists of finance ministers

Name Portrait Term of office Political party
(Alliance)		 Prime Minister
Liaquat Ali Khan 29 October 1946 14 August 1947 All-India Muslim League Jawaharlal Nehru
(Vice President of the interim govt)
R. K. Shanmukham Chetty 15 August 1947 1949 Indian National Congress Jawaharlal Nehru
John Mathai 1949 1950
C. D. Deshmukh 29 May 1950[2] 1957
T. T. Krishnamachari 1957 13 February 1958
Jawaharlal Nehru 13 February 1958 13 March 1958
Morarji Desai 13 March 1958 29 August 1963
T. T. Krishnamachari 29 August 1963 1965 Jawaharlal Nehru
Lal Bahadur Shastri
Sachindra Chaudhuri 1965 13 March 1967 Lal Bahadur Shastri
Indira Gandhi
Morarji Desai 13 March 1967 16 July 1969 Indira Gandhi
Indira Gandhi 1970 1971
Yashwantrao Chavan 1971 1975
Chidambaram Subramaniam 1975 1977
Haribhai M. Patel 24 March 1977 24 January 1979 Janata Party Morarji Desai
Charan Singh 24 January 1979 28 July 1979
Hemvati Nandan Bahuguna 28 July 1979 14 January 1980 Janata Party (Secular) Charan Singh
R. Venkataraman 14 January 1980 15 January 1982 Indian National Congress Indira Gandhi
Pranab Mukherjee 15 January 1982 31 December 1984
V. P. Singh 31 December 1984 24 January 1987 Rajiv Gandhi
Rajiv Gandhi 24 January 1987 25 July 1987
N. D. Tiwari 25 July 1987 25 June 1988
Shankarrao Chavan 25 June 1988 2 December 1989
Madhu Dandavate 2 December 1989 10 November 1990 Janata Dal
(National Front)		 V. P. Singh
Yashwant Sinha 10 November 1990 21 June 1991 Samajwadi Janata Party
(National Front)		 Chandra Shekhar
Manmohan Singh 21 June 1991 16 May 1996 Indian National Congress P. V. Narasimha Rao
Jaswant Singh 16 May 1996 1 June 1996 Bharatiya Janata Party Atal Bihari Vajpayee
P. Chidambaram 1 June 1996 21 April 1997 Tamil Maanila Congress
(United Front)		 H. D. Deve Gowda
I. K. Gujral 21 April 1997 1 May 1997 Janata Dal
(United Front)		 Himself
P. Chidambaram 1 May 1997 19 March 1998 Tamil Maanila Congress
(United Front)		 I. K. Gujral
Yashwant Sinha 19 March 1998 1 July 2002 Bharatiya Janata Party
(National Democratic Alliance)		 Atal Bihari Vajpayee
Jaswant Singh 1 July 2002 22 May 2004
P. Chidambaram 22 May 2004 30 November 2008 Indian National Congress
(United Progressive Alliance)		 Manmohan Singh
Manmohan Singh 30 November 2008 24 January 2009
Pranab Mukherjee 24 January 2009 26 June 2012
Manmohan Singh 26 June 2012 31 July 2012
P. Chidambaram 31 July 2012 26 May 2014
Arun Jaitley 26 May 2014 Incumbent Bharatiya Janata Party
(National Democratic Alliance)		 Narendra Modi

See also

References

  1. ↑ Bharadwaj. Study Package For Clat. Tata McGraw-Hill Education. p. 248. ISBN 0070699372, ISBN 978-0-07-069937-3.
  2. ↑

External links

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