Plan Finance II Division is primarily concerned with matters relating to the Central Plan. PF.II Division serves as a window within the Finance Ministry, which has an overview of the entire canvas of development activity of the Central Government, both at the project level and sectoral policy level. In respect of development schemes and projects, the focus has been on improving the quality of development expenditure through better project formulation, emphasis on outputs, deliverables, impact assessment, projectisation (Mission approach) and convergence.

Guidelines for Formulation, Appraisal and Approval of Government funded Plan schemes/projects have been issued vide O.M No.1 (2)/PF.II/ 03 dated 7 May 2003. According to these guidelines, which are in force w.e.f 1 July 2003, Ministries/Departments are required to prepare Feasibility Report (FR) for obtaining 'in-principle' approval of Planning Commission and a Detailed Project Report(DPR) for appraisal of the scheme/project in respect of all Plan schemes projects costing Rs.50 crore or more.

Plan Finance II is the Secretariat for the Public Investment Board (PIB). The PIB considers investment proposals of Central Government Ministries in regard to their Public Sector Undertakings. Under the existing guidelines, Central Sector Projects costing Rs.200 crore and above are considered by PIB. The Secretary (Expenditure) is the Chairman of the PIB and Joint Secretary (Plan Finance II) acts as the Secretary to the Board. Plan Finance II Division is also the focal point for delegation of financial powers to Expenditure Finance Committees (EFCs) and Standing Finance Committees (SFCs).

During the period 1 January 2005 to 31 December 2005, 43 EFC meetings chaired by Secretary (E) considered Plan investment proposals/schemes of various Ministries/Departments costing Rs.68111.86 crore. Also, 51 meetings of PIB were held and projects (including RCEs) with a capital outlay of Rs 168068.33 crore were recommended for obtaining CCEA approval.

Principles and Form of Accounts : The CGA prescribes general principles and form of accounts of government relating to Union as well as State governments and frames rules and manuals relating thereto. In exercise of this power, CGA is entrusted with the responsibility of framing and administering Government Accounting Rules, Central Government Accounts (Receipts & Payments) Rules, Central Treasury Rules, Accounting Rules for Treasuries, Account Code for State Accountant Generals, Account Code - Vol III, List of Major and Minor Heads of Account, Civil Accounts Manual, Suspense Manual, Drawing and Disbursing Officers Manual and Inspection Code.

Budgetary Control, Payments, Receipts Collection and Accounting: The CGA, through Chief Controller/Controller of Accounts and their Pay and Accounts Offices, carries out the budget control, payments, receipts collection and accounting functions of the Union. The CGA also prescribes the banking arrangement for government transactions and closely monitors movement of cash through a network of over 20,000 bank branches authorised to handle government transactions, into and out of the Government cash balance with Reserve Bank of India.

Financial Reporting : The CGA provides regular feedback to the Finance Minister and other line Ministries on the status of Government finances. He submits a critical fiscal analysis to the Finance Minister every month and releases data on Central Government Operations on the Internet in compliance with the Special Data Dissemination Standards (SDDS) of IMF. The CGA also compiles the annual accounts of the Union Government. The accounts comprising the Union Government Finance Accounts and the Appropriation Accounts, are presented before the Parliament duly audited by the Comptroller and Auditor General of India. A summary of these accounts is presented by the CGA in the form of "Accounts at a Glance" with a view to provide better understandability to the users of these documents.