Ministry of Finance (India)
The Ministry comprises of the five Departments namely:—
• Department of Economic Affairs
• Department of Expenditure
• Department of Revenue
• Department of Disinvestment
• Department of Financial Services
1. Department of Economic Affairs
Economic Growth As per the Advance Estimates released by the Central Statistics Office (CSO), the growth rate of the gross domestic product (GDP) at constant market prices has been estimated at 7.6 per cent in 2015-16, which is higher than the growth of 7.2 percent growth recorded in the previous year. The growth of the gross value added (GVA) at constant basic prices has been estimated at 7.3 per cent in 2015-16 —as opposed to 7.1 per cent in 2014-15—, with agriculture and allied sectors, industrial sector and services sector growing at 1.1 per cent, 7.3 per cent and 9.2 per cent respectively. The growth of GDP at constant basic prices for the first, second and third quarters of 2015-16 has been estimated at 7.6 per cent, 7.7 per cent and 7.3 per cent respectively.
On the demand side, the growth in final consumption expenditure at constant (2011-12) prices is estimated to have remained strong at 6.9 per cent in 201516, as compared to 7.2 per cent in 2014-15. The growth in gross fixed capital formation at constant prices increased from 4.9 per cent in 2014-15 to 5.3 per cent in 2015-16. Exports and imports of goods and non-factor services declined (at constant prices) by 6.3 per cent each in 2015-16; the former mainly on account of the sluggishness in the global economy and the latter on account of decline in international petroleum and other commodity prices.
Information on saving and investment is available only till the year 2014-2015. Gross saving as proportion of GDP at current market prices is estimated at 33.0 per cent in 2014-15 and 2013-14. Gross capital formation, also known as investment, was estimated to be 34.2 per cent of the GDP at current market prices in 2014-15, as compared to 34.7 per cent in 2013-14.
2. 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 State finances. The principal activities of the Department include pre-sanction appraisal of major schemes/projects (both Plan and non-Plan expenditure), handling bulk of the Central budgetary resources transferred to States, implementation of the recommendations of the Finance Commission and Central Pay Commission, 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, 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 organizational 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 coordinates all matters concerning the Ministry of Finance as a whole including Parliament-related work of the Ministry. The Department has under its administrative control the National Institute of Financial Management (NIFM), Faridabad, which is an autonomous body.
The business allocated to the Department of Expenditure is carried out through its Establishment Division, Plan Finance-I and Plan Finance-II Divisions, Finance Commission Division, Public Procurement Division, Direct Benefit Transfer Division, Staff Inspection Unit, Office of Chief Advisor Cost, Controller General of Accounts and the Central Pension Accounting office.
3. Department of Revenue
1. The Department of Revenue exercises control in respect of revenue matters relating to Direct and Indirect Union taxes. The Department is also entrusted with the administration and enforcement of regulatory measures provided in the enactments concerning Central Sales tax, Stamp duties and other relevant fiscal statutes. Control over production and disposal of opium and its products is vested in this Department.
2. The Department is also facilitating taxation reforms in the indirect taxes sector for goods and services in coordination with the States. These cover an extended ambit, encompassing the switch-over from erstwhile State Sales tax to Value Added tax, phasing-out of Central Sales tax, rationalization of Additional Excise duties on goods of special importance and eventual evolution of a frame work for dual Goods and Service tax.
3. Tax policies are formulated in order to mobilize financial resources for the nation, achieve sustained growth of the economy, macro-economic stability and promote social welfare by providing fiscal incentives for investments in the social sector. The underlying theme of the tax proposal for the Budget 2015-16 has been clarity in tax laws, a stable tax regime, a non- adversarial tax administration leading to widening and deepening of tax base and a fair mechanism for dispute resolution.
4. The Income Tax Offices throughout the country continued their drive against tax evaders. During the F.Y. 2015-16 (upto 30.11.2015), searches were conducted in 249 groups resulting in seizures of assets worth 469.71 crore and admission of undisclosed income of 6167.12 crore. During the same period, 1802 surveys conducted resulted in detection of undisclosed income of 3577.12 crore. Prosecutions were filed in criminal courts in 105 cases (upto September 2015) and 345 prosecutions were compounded. As regards assessees, the number of new assessees added during the F.Y. 2014-15 was 76.04 Lakh. 5. The Customs and Central Excise offices continued their drive vigorously against duty evasion. During the F.Y. 2015-16 (Jan. - Dec. 2015), 2304 cases of Central Excise duty evasion involving 5106.41 crore were detected. In respect of Service Tax 7050 cases were registered involving Service Tax evasion amount of `17435.15 crore. Similarly, 2989 cases were registered evading Customs duty during the F.Y. 2015-16 (Jan - Dec 2015) involving a duty recovery of `2237.47 crore. The drive against smuggling continues unabated. All Commissionerates along the coast, land borders and in charge of international airports remain fully alert to prevent smuggling of contraband, both into and out of the country. As a result, during F.Y. 2015-16, 28588 outright smuggling cases were detected and contraband goods worth 9516.83 crore were seized.
4. Department of Disinvestment
The Department of Disinvestment was set up as a separate Department on 10th December 1999 and later renamed as Ministry of Disinvestment from 6th September 2001. From 27th May 2004, the Department of Disinvestment is one of the Departments under the Ministry of Finance.
5. Department of Financial Services
The Department of Financial Services (DFS) is mainly responsible for policy issues relating to Public Sector Banks (PSBs) and Financial Institutions including their functioning, appointment of Chairman, Managing Director and Chief Executive Officers (MD & CEOs), Executive Directors (EDs), Chairman cum Managing Directors (CMDs), legislative matters, international banking relations. Appointment of Governor/Deputy Governor of Reserve Bank of India, matters relating to National Bank for Agriculture and Rural Development (NABARD), Agriculture Finance Corporation, Cooperative Banks, Regional Rural Banks (RRBs) and Rural/Agriculture Credit. The Department also administers the Financial Inclusion programme of the Government, Social Security Schemes and other targeted schemes aimed at facilitating flow of credit. Matters relating to Insurance Sector and performance of Public Sector Insurance Companies, administration of various Insurance Acts. Matters relating to Insurance Regulatory & Development Authority of India (IRDAI). Matters relating to Pension Reforms including the New Pension System (NPS), legislative and other issues regarding the Pension Fund Regulatory and Development Authority (PFRDA) etc.See more