National Portal of India : Sectors : Finance : Finance and Economy : Expenditure

Home > Sectors > Finance > Finance and Economy : Expenditure

Expenditure

The Department of Expenditure comprises eight main divisions, namely:

Establishment Division

Establishment Division is the nerve centre for the entire gamut of the service conditions of the Central Government employees having financial content. Basically, these include revision/prescription of pay scales, fixation of pay and various allowances. The proposals received from various Ministries/Departments of the Government seeking clarification in regard to revision and prescription of pay scales, increments, deputation allowance and cadre review of various categories of posts are examined in this division keeping in view the equity and comparable relativities and duties. Besides, this Division also functions as the Cadre Authority for the Indian Cost Accounts Service (ICAS) and also attends to vigilance related issues. A Public Grievance Redressal Machinery with Joint Secretary in charge of Administration as the Director of Grievances is also functioning in this department. A "Complaint Committee" has also been constituted in this Department as per the guidelines of the Supreme Court for redressing the grievances of women.

Plan Finance-I Division

The Plan Finance-I Division handles matters relating to States' finances and financing of States' Annual Plans. It releases Central Assistance to States for their Annual Plans including the assistance for externally aided projects, additional Central assistance for Slum Development Programme, Hill Areas/ Western Ghats Development Programmes, Border Areas Development Programmes, Accelerated Irrigation Benefit Programmes, Accelerated Power Development Programme, Pradhan Mantri Gramodaya Yojana (PMGY-others), additional Central assistance for other specific schemes/projects of the States, Special Plan Assistance to States, national Social Assistance Programme including Annapurna, Central assistance for Development and Reform Facility/ Rashtriya Sam Vikas Yojana, Central assistance for Initiative for Strengthening Urban Infrastructure (ISUI) Mid-Day-Meal Scheme, National E- Governance, Medium Term Non-Plan Loan.

On the recommendations of Ministry of Agriculture and Ministry of Home Affairs 'on account payment' of grants-in-aid to the State Governments from National Calamity Contingency Fund (NCCF) towards relief necessitated by Tsunami during the EFC (2000-2005) award period, an amount of Rs 8063.43 crore was released. Eleventh Finance Commission had recommended a sum of Rs 8,255.69 crore Centre's share under Calamity Relief Fund (CRF) for its award period 2000-2005 to the States. Centre's share of CRF amounting to Rs 8223.56 crore was released during the EFC (2000-2005) period.

In order to help the States to capitalise on the current low interest regime, Government of India had formulated the Debt Swap Scheme. The Scheme enabled States to pre-pay expensive loans contracted from Government of India in the past, with current low coupon bearing small savings and open market loans. The Debt Swap Scheme impacted on the interest burden through the gradual conversion of the high cost debt into a low cost debt. The process has helped the States by reducing the burden of interest payments in the years to come. Debt Swap Scheme (2002-2005) closed on March 2005 with swap of high cost debt of Rs 102033.59 crore out of the total of Rs 114316.59 crore.

(Page 1 of 4 )

Search