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Indian Revenue Service, Indian Audit and Accounts Service, Indian Economic Service, and Indian Civil Accounts Service are supervised by the Ministry of Finance. It is also the supreme controlling authority of the Indian Cost and Management Accounts Service, one of the central functionality services.
History
K. Shanmukham Chetty was India’s first independent Finance Minister. On November 26, 1947, he gave India’s first budget since it had become independent.
Department of Financial Services
The Department of Economic Affairs is the coordinating agency of the Union Government responsible for formulating and monitoring domestic and international economic management policies and programmes. This department is primarily responsible for preparing and presenting the Union Budget to the parliament, as well as budgets for state governments under President’s Rule and union territory administrations.
- Formulation and monitoring of macroeconomic policies, including fiscal policy and public finance, inflation, public debt management, and the functioning of the Capital Market, including stock exchanges. In this context, it examines ways to raise internal resources through taxation, market borrowings, and mobilisation of small savings;
- Monitoring and raising external resources through multilateral and bilateral Official Development Assistance, sovereign borrowings abroad, foreign investments, and monitoring foreign exchange resources including balance of payments;
- Production of bank notes and coins of various denominations, postal stationery, and postal stamps;
- Production of bank notes and coins of various denominations, postal stationery, and postal stamps;
- Production of bank notes and coins of various denominations (IES).
Department of Revenue
The Department of Revenue operates under the supervision and direction of the Secretary. Through two legislative Boards, namely the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC), the Central Board of Direct Taxes (CBDT) exerts authority over all Direct and Indirect Union Taxes. Each Board is led by a Chairman who is also a Special Secretary of the Indian government (Secretary level). The CBDT is responsible for the imposition and collection of all Direct taxes, whereas the CBIC is responsible for the imposition and collection of GST, Customs Duty, Central Excise charges, and other Indirect taxes. The two Boards were established under the 1963 Central Board of Revenue Act. Currently, there are six members of the CBDT and five members of the CBIC. Members are also Secretaries of the Indian government in their own right. Members of CBDT include the following:
- Member (Income Tax)
- Member (Legislation and Computerisation)
- Member (Revenue)
- Member (Personnel & Vigilance)
- Member (Investigation)
- Member (Audit & Judicial)
This department’s current secretary is Tarun Bajaj; his predecessor was Ajay Bhushan Pandey.
Department of Financial Services
The Department of Financial Services is responsible for Banks, Insurance, and Financial Services offered by different government organisations and commercial companies. It also addresses pension changes, industrial finance, and micro, small, and medium-sized businesses. It began the Pradhan Mantri Jan Dhan Yojana.
Shri Debasish Panda currently serves as the department’s secretary.
This department is responsible for the following central government institutions:
Recruitment Bodies
Institute of Banking Personnel Selection (IBPS)
National Apex Bodies
- Indian Institute of Banking and Finance (IIBF)
- Insurance Institute of India
- Institute of Actuaries of India
Investment and Public Asset Management Department
The Department of Disinvestment has been renamed the Department of Investment and Public Asset Administration (DIPAM) in an effort to ensure the effective management of the Centre’s equity assets, including its disinvestment in central public sector firms. In his 2016-17 budget speech, Finance Minister Arun Jaitley announced the rebranding of the Department of Disinvestment. Initially established in December 1999 as an independent ministry (The Ministry of Disinvestment), the Department of Disinvestments came into existence in May 2004 when the ministry was converted into a division of the Ministry of Finance. The department assumed the responsibilities of the former ministry, which was primarily responsible for a methodical approach to the disinvestment and privatisation of Public Sector Units (PSUs).
Administration of Public Enterprises
Formerly part of the Ministry of Heavy Industries and Public Enterprises, the Department of Public Enterprises will now report to the Ministry of Finance. The Finance Ministry will now have six divisions, while the Ministry of Heavy Industries and Public Enterprises, the parent ministry of DPE, would be renamed the Ministry of Heavy Industries. The transfer of the Department of Public Enterprises to the Ministry of Finance would aid in the efficient supervision of the Central Public Sector Enterprises’ capital spending, asset monetisation, and financial health (CPSEs).
Financial Services
The finance industry, which includes credit unions, banks, credit card companies, insurance companies, accounting firms, consumer-finance companies, stock brokerages, investment funds, individual asset managers, and some government-owned enterprises, provides financial services.
The term “financial services” encompasses a wide variety of activities, including banking, investing, and insurance. Financial products are the real items, accounts, or investments offered by financial services organisations.
Financial Institution
A financial institution (FI) is a firm that engages in financial and monetary operations, including deposits, loans, investments, and currency exchange. Banks, trust companies, insurance companies, brokerage firms, and investment dealers are examples of financial institutions within the financial services industry.
Practically everyone living in a modern economy needs the services of financial institutions on an ongoing or at least occasional basis.
Conclusion
The Ministry of Finance is in charge of the country’s budgetary management. The Department of Economic Affairs, Department of Expenditures, and Department of Revenue are its three departments. The Budget Division of the Department of Economic Affairs is responsible for preparing the government’s budget.
