The Central Finance Department: What is it?

The Central Finance Department: What is it?

Division of Public Finance (Central)

The Public Finance (Central) Division handles all matters pertaining to the Government of India's central planning. In this sense, all publicly sponsored programs and initiatives of Central Ministries/Departments are evaluated and approved by this Division.

This Division serves as the Public Investment Board (PIB) Secretariat for all Central Ministries/PSUs projects with budgetary outlays over Rs 500 crore. The PIB is led by the Secretary (Expenditure) and is responsible for the review of such projects. If a project's pre-investment activities cost more than Rs. 500 crores, the project is evaluated by the Planning and Development Board (PIB). In a same vein, this division is in charge of calling meetings of the Expenditure Finance Committee (EFC), which is presided over by the Secretary (Expenditure), for any Central Government program for which the budgetary allotment above Rs 500 crore.

The Division focuses on improved planning/project design, deliverables, outputs, impact evaluation, and convergence strategy in order to constantly improve the quality of public spending. In order to maximize and concentrate the use of public resources, ongoing efforts are undertaken to streamline Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CS). In collaboration with NITI Aayog, this division is also in charge of creating result budgets for each of the Central Ministries and Departments. All CSSs and CSs working with measurable objectives found in the applicable medium-term framework will be covered by this output-results framework, with annual targets for both financial and material outputs. Additionally, this division communicates outlays for centrally funded and centrally sector programs on the Finance Commission cycle in collaboration with the Budget Division.

This division also handles the financial restructuring of Central PSUs in accordance with the suggestions made by the Bureau of Restructuring of Public Sector Enterprises (BRPSE). Additionally, it gives CPSEs financial support, determines the amount of Internal and Extra Budgetary Resources (IEBR) they produce, prepares a budget for capital expenditure planning, and completes the upgrading of equipment and plants to guarantee more efficient operations. is focusing on approaches that provide form. Manufacturing.

This section handles a range of matters including food, fertilizer, and petroleum subsidies, such as calculating their amount and providing support to relevant parties. Additionally, the Division actively consults with Ministries that are interested in creating the government's subsidy policy via a dynamic rationalization process to guarantee improved service delivery, cost effectiveness, beneficiary targeting, and efficiency.

Aadhaar seeding of beneficiaries' databases, Direct Benefit Transfer (DBT) and other concerns are also handled by the Division. In addition, the Division works with the DBT Mission to provide end-to-end digital information on all government services via the Public Financial Management System (PFMS). Possibly accessible. Spending that includes subsidies, CS, CSS, and other costs. In addition to serving as the National Clean Energy and Environment Fund (NCEEF) Secretariat, the Public Finance (Central) Division is also charged with arranging meetings of the Inter-Ministerial Group (IMG), which is led by the Finance Secretary and evaluates projects that qualify for feasibility gap funding. The task has been allocated. VGF) provided by NCEEF.

Two units, Public Finance (Central-I) and Public Finance (Central-II), are responsible for managing the aforementioned divisional responsibilities. These units are supervised by a Joint Secretary and two Additional Secretaries.