FINANCE MINISTRY
The world today runs on the operations of finance. Financing for subsidies, for development as a whole, for growth, to eradicate poverty and unemployment, to ensure the industrial development and education growth etc. The day when the budget is read out by the finance minister in the Lok Sabha, people are so anxious to know the adjustments in the financial code of the country. It changes the destiny of people, some of the time. Consequently, is the impact of the ministry of finance in the Indian economy.
This incites one to be curious of the functioning of the ministry. How does the ministry of finance actually works? What is the mechanism they follow? Who are responsible for taking decisions? What is the hierarchy of the ministry? What is the work at each level? How do they come up with the finance bill? What are the precautions they take? and so on are few of the queries which I would try answering in this blog.
At the point when, money has turned into a piece of our lives, we should demonstrate some enthusiasm for knowing the intricacies behind the play. The ministry of finance is headed by the finance minister who is in return assisted by a chunk of bureaucrats. As the finance is a big subject, it cannot be dealt singularly, so are the divisions made into various departments. The departments which make the ministry of finance are departments of economic affairs, revenue, expenditure, financial services and dis investments.
The department of economic affairs deals in the formulation of the country's economic policies and the preparation of union financial budget. It also looks into the formulation and monitoring of macroeconomic policies, including issues relating to fiscal policy, public finance, inflation, functioning of capital market including stock exchanges etc.
The department of expenditure deals in the management of expenditure in the government. Its main responsibility is to distinguish between the planned and unplanned expenditure and allocate the resources for the both according to their requirement. Moreover, it has a great responsibility of checking on the expenditure by every other ministry in their own activities for growth and development.
The department of revenue basically looks into the matters of all the revenue that government earns in the form of taxes. Taxation plays an important role in an individual's life as well as it projects the survival of the government. Here comes the department which frames the taxation policy of the country. The formulation of direct and indirect taxes, the rates of taxes etc are decided by this department.
The department of financial services covers the functioning of the banks, financial institutions, insurance companies and national pension system. Financial inclusion of the recent past was the idea emerged from this department. Pradhan mantri jan dhan yojana, was the initiative of this department which ensures a bank account for every individual to connect them the needed means.
The department of dis investments mainly deals in the privatisation of public enterprises which are sick units in order to ensure them with a better opportunity to develop.
This incites one to be curious of the functioning of the ministry. How does the ministry of finance actually works? What is the mechanism they follow? Who are responsible for taking decisions? What is the hierarchy of the ministry? What is the work at each level? How do they come up with the finance bill? What are the precautions they take? and so on are few of the queries which I would try answering in this blog.
At the point when, money has turned into a piece of our lives, we should demonstrate some enthusiasm for knowing the intricacies behind the play. The ministry of finance is headed by the finance minister who is in return assisted by a chunk of bureaucrats. As the finance is a big subject, it cannot be dealt singularly, so are the divisions made into various departments. The departments which make the ministry of finance are departments of economic affairs, revenue, expenditure, financial services and dis investments.
The department of economic affairs deals in the formulation of the country's economic policies and the preparation of union financial budget. It also looks into the formulation and monitoring of macroeconomic policies, including issues relating to fiscal policy, public finance, inflation, functioning of capital market including stock exchanges etc.
The department of expenditure deals in the management of expenditure in the government. Its main responsibility is to distinguish between the planned and unplanned expenditure and allocate the resources for the both according to their requirement. Moreover, it has a great responsibility of checking on the expenditure by every other ministry in their own activities for growth and development.
The department of revenue basically looks into the matters of all the revenue that government earns in the form of taxes. Taxation plays an important role in an individual's life as well as it projects the survival of the government. Here comes the department which frames the taxation policy of the country. The formulation of direct and indirect taxes, the rates of taxes etc are decided by this department.
The department of financial services covers the functioning of the banks, financial institutions, insurance companies and national pension system. Financial inclusion of the recent past was the idea emerged from this department. Pradhan mantri jan dhan yojana, was the initiative of this department which ensures a bank account for every individual to connect them the needed means.
The department of dis investments mainly deals in the privatisation of public enterprises which are sick units in order to ensure them with a better opportunity to develop.
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