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The first finance minister of independent India was R. K. Shanmukham Chetty. He took power and introduced India’s first budget on 26 November 1947.
Know about the Ministry of Finance
The Ministry of Finance is a service within the Indian Government dealing with the Indian economy, acting as the Treasurer of India. In particular, it concerns tax, financial law, financial institutions, financial markets, institutional and provincial finances, and the Union Budget.
The Ministry of Finance is the main regulatory authority for the four public services, namely Indian Revenue Service, the Indian Audit and Accounts Service, Indian Economic Service and the Indian Civil Accounts Service. It is also a senior management officer of one of the central operating services, namely the Indian Cost and Management Accounts Service.
Functions of Ministry
- Ensuring national and government financial stability.
- Allocate annual costs for the implementation of government infrastructure projects.
- Ensuring food security for the country; and public safety through TAP and SCP schemes.
- Provide policies and guidelines to promote national economic growth.
- To provide quality service to the various customers of the Unit.
- To develop and establish adequate human resource management.
- Improve the functions of administrative support services.
- Develop and implement a fully integrated Public Works Accounting system.
- Improving the structure and format of Consolidated National Accounts.
Main Departments Under Finance
Department of Economic Affairs
The Department of Economic Affairs is the primary agency of the Union Government to formulate and monitor national economic policies and programs that affect the domestic and international aspects of economic governance. The main function of this department is to prepare and present the Union Budget in Parliament and the Provincial Government Budget under the Presidential Act and the administration of the union premises.
Department of Expenditure
The Treasury Department is the main department responsible for overseeing the Public Finance Management System (PFMS) in Central Government and state financial matters. The main functions of the department include pre-evaluation of the approval of major programs/projects (both Program and non-Programme costs), managing a large portion of Central Referral budget sources, and the implementation of the recommendations of the Finance Commission and Medium Revenue, which oversees expenditure management in Central Organizations.
Department of Revenue
The Treasury is operating under the direction and control of the Secretary (Revenue). Exercises control over matters relating to all direct and indirect union taxes through two statutory Boards, namely, the Central Direct Tax Board (CBDT) and the Central Tax and Customs Board (CBIC).
Department of Financial Services
The Department of Financial Services oversees Banks, Insurance, and Financial Services provided by various government agencies and private companies. It also oversees pension reform and Industrial Finance and Small, Medium and Medium Enterprises.
Department of Investment and Public Asset Management
The Investment Department has been renamed the Department of Investment and Public Asset Management or ‘DIPAM’, which is a decision aimed at managing the Institute’s investment equity equally, including its non-investment in state-owned enterprises.
Department of Public Enterprises
The Department of Public Enterprises, which was previously part of the Department of Industry and Public Enterprises, will now be under the Department of Finance. The Department of Finance will now have six departments, and the parent division of DPE, the Department of Hard Industry and Public Enterprises, will now be called the Department of Hard Industry.
Who is a Finance Minister?
The Minister of Finance is a senior or cabinet official in charge of one or more public finances, economic policy and financial management.
The finance minister’s portfolio has many different names around the world, such as “treasurer”, “finance”, “financial affairs”, “economy”, or “economic affairs”. The position of finance minister may be called this portfolio, but it may also have another name, such as “Treasurer” or, in the United Kingdom, “Chancellor of the Fund.”
Finance ministers are also often found in federal or state governments. In these cases, their powers may be severely limited by higher law or monetary policy, especially tax control, expenditure, currency, interest rates between banks and the provision of funds.
The powers of the finance minister vary between governments. In the United States, the finance minister is referred to as the “Secretary of the Treasury”, although there is a separate and subordinate Treasurer of the United States, and he is the director of the Administration and Budget Office who writes the budget.
What are the Responsibilities of a Finance Minister?
The Minister of Finance is responsible for the overall portfolio of finance and is responsible for the following:
- Budget policy and policy advice, and review of government programs.
- Government accountability for finance, governance and financial management structures, including grants and procurement policy.
- Adviser to shareholders in Government Business Enterprises (GBEs) and trading entities treated as GBEs.
- Policy direction and management of applications for charitable action and withdrawal of debts owed to the Commonwealth.
- Comcover policy guide, self-regulatory insurance fund, and risk policy.
- General policy guidelines for Commonwealth official authorities.
- Pension provisions for Australian Government employees under the citizens and members of parliament, as well as the retirement benefits of Governors-General, Government Judges and District Court Judges.
- Sales of goods.
- Policy advice on Future Fund and Australian Government Investment Funds and authorization of payments from Australian Government Investment Funds to organizations.
Conclusion
We now know in detail about the finance ministry of India and its roles and responsibilities. It is clear from this that the finance minister has immense power regarding all financial matters of India.
