Finance Department has two Functions Regulatory and Administrative
As far as the administrative Function is concern Finance Department is having 6 Head of Department under it. It controls the working of treasuries and rendition of A/c's to A.G., Internal Audit and Pension Claim preparation, statutory audit of local bodies and grant-in-aided institution, liaison between Nationalised Bank and Small Savings
Regulatory Function of the department is the most important. It is the nodal center for monitoring all financial transactions of the State. It performs all the important function of budget preparation for the state as well as monitoring the receipts and expenditure incurred during the year. The department also gives loans to departments as well takes loans from different agencies to run its various schemes and projects. Another important task of the department is to monitor the reappropriation of funds. Preparation of Rules relating to financial matters and its interpretation sought by the departments it also important function.
Budget preparation is the main responsibility of the Finance Department. Budget or the Annual Financial Statement, is to be laid before the legislature in each year.
Online Receipts and Expenditure Estimates from departments for Next Financial year, the entire budget is prepared that shows an approximate picture of the accounts in advance and prepare ready material for different department for their working. The FD requests the departments to furnish material to serve as the basis of estimates. The Head of Departments prepare the estimates for each head of account with which they are concerned and forward them before prescribed date to the Finance Department and the concerned administrative department. The Accountant General also submits estimates under certain heads. He renders such assistance as is required by the FD. Once proposal of estimates received, the estimates are iteratively discussed among the FD and the respective user departments and revised several times based on past performance of the department and priorities of schemes etc.
Finally, the FD consolidates the estimates embodying the decisions of Government and prepares the Budget Estimates. These are then put to the legislature for final approval. On approval of the Council of Ministers, the documents are got printed in form of Volumes and Grant wise detailed estimates of expenditure. These are discussed in the legislature with reference to the policies and programmes of the Government in the FMs speech. The individual demands for grants are moved by the respective ministers and discussed in the House.
After approval of the legislature, the budget estimates are sent to the Budget Controlling Officers. Then BCO, allocate the funds to different DDOs depending on the initial estimates provided by them.