FINANCE

Ministry of Finance is responsible for administration of finances of the Govt. It is concerned with all economic and financial matters affecting the country as a whole including mobilization of resources for development and other purposes.

It regulates expenditure of the Govt. including transfer of resources to the states. It has 5 Department

o Economic Affairso Expenditureo Revenueo Disinvestmento Financial Services

DEPARTMENT OF ECONOMIC AFFAIRS

Price supports policies for agricultural commodities are announced with a view to encourage higher investment and production and to safeguard the interest of consumers by making available supplies at reasonable prices.

Minimum Support Price (MSP) has been raised to ensure remunerative prices to the growers and thereby enhancing the production of agricultural crops.

Index for eight core industries (Coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity)

Terms can be refereed in Survey or Economy books (LAF, CRR, CMB, MSF, Special Repo Window,Balance of Payment, Foreign Exchange Reserve, External Debt , World Bank)

Social Sector Development

Mentioning the name of the scheme as in IYB it’s only data and in survey I guess you will get all information about these otherwise Google (MNERGA, PMGSY, IAY, NRLM, SJSRY, NHM, MDM, RSBY)

Small Savings Schemes currently in forces are –o PO Savings Account, Time Deposits (1,2,3 & 5 years), Recurring Deposits, Monthly

Accounto Senior Citizens Savings Schemeo National Savings Certificate (8th issues) & (9th Issue)o Public Provident Fund

In order to account for all the monetary transactions under small savings schemes of the Central Govt. under one umbrella “National Small Savings Fund” was setup in Public Account of India. They are invested in the special securtites of various States/UT/CG.

Increase the first time investor to invest in listed mutual funds and equity for three successive years from one; and income limit raised from Rs 10laks to Rs 12lakh for Rajiv Gandhi Equity Saving Scheme

DEPARTMENT OF EXPENDITURE

The Office of the Chief Advisor Cost (CAC) is responsible for advising the Ministries and Govt. Undertakings on cost accounts matters and to undertake cost investigation work on their behalf.

The National Committee on Direct Cash transfer chaired by PM, is to be assisted by the executive Committee on Secretary, PC, Mission Mode Committees, namely Financial Inclusion Committee, Technology Committee and Implementation Committee on Electronics Transfer of Benefits.

National Institute of Financial Management in 1993, would be training institute for officers recruited by UPSC through annual Civil Service Examination and allocating to various service responsible for managing senior and top management post dealing with accounts and finance in the govt.

DEPARTMENT OF REVENUE

It functions under the overall direction and control of the Secretary It exercise control in respect of matters relating to all the Direct and Indirect Union Taxes through 2

Statutory boards namely, o The Central Board of Direct Taxes (CBDT)

Matters relating to the levy and collection of all Direct Taxes are looked o Central Board of Excise and Customs (CBEC).

Relating to levy and collection of Customs and Central Excise duties, Service Tax and other Indirect taxes.

Tax on sale or purchase of goods within a State is a State subject. VAT for State and CST for Centre. (Economy) Main recommendation for GST are

o Inclusion of petrol and petroleum products and alcoholic liquor within definition of GSTo Dispute resolution among States and Between Union and States to be done by GST

councilo Abolition of Entry Taxo Establishment of a GST compensation Fund through a Const. Amendment

o Distribution of remaining proceeds of GST amongst States and Union at the end of Financial year

o Viability of Modified Bank Model for settlement of proceeds arising out of inter-state Trade

o Establishment of GST monitoring cell etc. CBEC deals with tasks of formulation of policy concerning levy and collection of Customs and Central

Excise duties, Service tax, prevention of smuggling and evasion of duties and all administrative matters relating to Customs, Central Excide and Service Tax formations. It also ensures taxes on foreign and inland travel are administrated as per the law and the collection agencies deposit the taxes collected to the public exchequer promptly.

Customs and Central Excise Settlement Commission objective is to expedite payments of Customs and Excise duties involved in disputes , by avoiding costly and time consuming litigation process and to give an opportunity for tax payers who have evaded payment of duty to come clean.

Women’s Bank- Bharatiya Mahila Bank Limited Setup India’s first Women’s Bank to address the gender related aspects of financial access to all

sections of women, empowerment of women and financial inclusion To achieve economic empowerment, women need equal access to economic institutions and

control of assets. Control over assets is essential to access finance and vice versa. First step towards economic empowerment is to provide equal access to financial services to

women while addressing the problem of lack of collateral This would help promote both asset ownership y women and entrepreneurship which would

increase employment opportunities for them.

Regional Rural Banks

To strengthen the RRB for playing a greater role in agriculture, rural lending and financial inclusion , the following measures are-

o All Branches of RRB are on CBS platformo Recapitalization support to 40 RRB to enhance their CRAR to 9%.o Kisan Credit Card (1998), as a innovative credit delivery system aiming at adequate and

timely credit support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible, convenient and cost effective manner. This scheme is being implemented by all District Central Cooperative Banks, RRB, and PSC Banks. A new scheme for KCC has been circulated by RBI and NABARD which provides for KCC as an ATM card

o Rural Infra. Development Fund (RIDF) - Setup in 1995-96 within NABARD by the way of deposits from SC Banks operating in India from the shortfall in their agricultural/priority sector/ weaker sections lending.

Export Import Bank of India

Exim bank offers a comprehensive range of lending and service/advisory programmes, aimed at aiding the globalization efforts of Indian companies. This enables the Bank to promote inclusion of a large cross section of India exporter in the opportunities bring thrown up by globalization.

Rural Housing Fund

Setup in 2008-09 to enable primary lending institutions to access funds for extending housing finance to targeted groups in rural areas at competitive rates.

Pension Sector

National Pension System (NPS) , all the new recruits to the Govt except armed forces. The features of the NPS design are self-sustainability, portability and scalability. It provides various investment option and choices to individual.

PFRDA is regulatory body, consolidating the initiatives for full NPS and expanding the reach of the NPS distribution network.

Swavalamban Scheme

To encourage workers in the unorganized sector to save voluntarily for their old age, called Swavalamban Scheme. It is a co-contributory pension scheme whereby the Central Govt would contribute a sum of Rs 1000 per annum in each eligible NPS account opened with a saving of Rs 1000 to Rs 12000 per annum.

Obligations towards the rural and social sectors; micro insurance and licensing of agents corporate agents, brokers and third party administrators. IRDA has also laid down the regulatory framework for registration of insurance companies, maintenance of solvency margin, investments and financial reporting requirements.

Social Security Scheme – Aam Aadmi BIma Yojana (AABY) For the benefit of the weaker sections of the society, GOI floated a highly subsidized insurance

scheme, AABY administrated by LIC. BPL and marginally above poverty line citizens are covered under 48 identified occupations. Scheme provides death cover of Rs 30000 in case of natural death ; in Death or total disability

(including loss of 2 limbs/2 eyes) due to accident, a sum of Rs 37500 is payable to the nominee/beneficiary.

All these benefits are paid for nominal premium of Rs 200 per member per annum out of which Rs 100 is borne by Central Govt. through Social Security Fund maintained through LIC and balance borne by member of Nodal agency and Central/State govt.

Add-on benefits of Scholarship at the rate of Rs 1200 per annum per child for 2 children per family of the insured members studying 9th to 12th (including ITI).

DEPARTMENT OF DISINVESTMENT

Govt had decided to list all profitable CPSE on the stock exchanges Market capitalization of CPSEs reflects the market’s view about the management of CPSEs and is

thus a good barometer of the efficiency of CPSEs and fall in the market capitalization exerts pressure on the management to perform better to the expectations of the investors for higher wealth creation.

Main objective of the disinvestment policy is to develop people’s ownership of CPSE so as to let them directly share their wealth and prosperity. The policy ensures that Govt. equity does not fall below 51% and Govt. retains management control.

All unlisted CPSUs having positive net worth, no accumulated losses and having earned net profit for three preceding consecutive years, are to be listed through public offerings out of Govt. shareholding or issue of fresh equity by the company or a combination of both.

National Investment Fund into which the realization from sale of minority shareholding of the Govt. in profitable CPSEs would be channelized. The Fund would maintain outside the CFI. The income ofthe funds would be used for the following broad investment objectives-

o Investment in social sector projects which promote education, health and employment. In 2013, Govt. approved restructuring of the NIF and decided that the disinvestment proceeds with

effect from the fiscal year 2013-14 will be credited to the existing Public Account under the head NIF and they would remain there until withdrawn, invested for the approved purpose.