The ministry comprises of five departments: Economic affairs, disinvestment, financial services, expenditure, revenue.
Government has consolidated fund, contingency fund and public account of India to manage its finances. Money from the consolidated fund can be withdrawn only after parliament’s approval. the money from the contingency fund can be withdrawn in an emergency but needs parliaments approval later. Public account is for transactions of government and no legislative approval needed.
Department of Economic affairs:
Responsible for preparation of Union budget, budget of states under Presidents rule and Union territories.
The budget is sanctioned through the appropriation bill which contains all demand for grants. this bill cant be altered and needs to be passed. Each ministry has one demand for grant but large ministries can have multiple too.
A finance bill is a money bill presented to impose taxation. It is accompanied with a memorandum explaining its provisions.
The procedure of getting budget passed takes two months so for temporary arrangement of finance a vote of account is done. Appropriation bill is passed by Lok Sabha approving allocation of funds to meet two months of expenditure.
Infrastructure Debt Funds:
To channel long term stable finance towards infrastructure projects these funds have been allowed. the income from these shall be tax free. the interested parties who can invest are offshore institutional investors, high net worth individuals and domestic institutional investors. the IDF can be setup as a NBFC or a trust.
Real estate investment trust and infrastructure investment trust:
Special mutual funds for financing long term real estate or infrastructure projects. High net worth investors can invest in these. they provide low cost finance to such projects.
National investment and infrastructure fund
To be created by the government for maximizing the impact of commercially viable projects. NIIF would invest in equity or related products of NBFC that finance infrastructure projects.
Foreign investment promotion board
Single window clearance for FDI proposals with the secretary to the Dept of Economic affairs as the chairman and secretaries of other ministries like external affairs, overseas affairs, small scale industries as members.
Experts from trade, industry and commerce or representatives from financial institutions too are invited. FDI from NRI investments is handled by Dept of Industrial policy and promotion.
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Q1:Money from the consolidated fund can be withdrawn only after
3.no assent needed
Q2:Responsible for preparation of Union budget, budget of states under Presidents rule and Union territories is
1.Department of Economic affairs
2.Department of Revenue
3.Department of Financial services
4.Department of Expenditure
Q3:Special mutual funds for financing real estate projects are
Q4: FDI from NRI investments is handled by
1.Foreign investment promotion board
2.Dept of Industrial policy and promotion.
Q5:Which is true
1.the money from the contingency fund can be withdrawn in an emergency but needs parliaments approval later.
2.Public account is for transactions of government and no legislative approval needed.