Finance Department

POLICY NOTE -  2002-03

 DEMAND NO.15

"To be able to generate wealth , to lay it up and guard,

And also well to  distribute it, marks a royal head"

The role of Finance Department has been well  defined in the above  words of the saint  Thiruvalluvar. Finance Department  plays a vital role  in framing the State Budget  every year. The  analysis  made in Finance Department  of the  various  inputs which  go into the making of the State Budget  is varied and exhaustive.

 2.  Expenditure  control  and effective finance management  are the  key functions of the Finance Department. The Finance Department makes a critical scrutiny of the proposals of other departments. It evaluates the proposals with reference to needs, cost effectiveness, budget provisions, financial procedure etc. keeping in mind the importance of balancing receipts and expenditures and achieving  the overall objectives of the Government.

3. The following Heads of Departments come under the administrative  control of Finance Department.

1. (i)    Small Savings
2. (ii)   Raffles
3. (iii)   Chief Internal Audit
4. (iv)   Data Centre
5. (v)    Treasuries and Accounts
6. (vi)    Pension     
7. (vii)  Local Fund Audit
8. (viii)  Co-operative Audit

4.  The functions of the above departments are explained in the following paragraphs.

SMALL SAVINGS

5.   Small  Savings  constitute  an important source of revenue to the State Government. The Government of India has decided  to devolve  the entire net collections of small savings as a  long term loan to the State Government,  repayable over 25 years, including  five years of moratorium. This loan carries an interest of 10.5% per annum.     

6.  There  are numerous Small Savings Schemes  suitable  for all  categories of people. They include:

a) Scrips with high returns:

    (i) Kisan Vikas Patra

b) Scrips offering Tax Concession:

     (i) National Savings Scheme -1992

    (ii) National Savings Certificate - VIII issue

   (iii) 15 Year Public Provident Fund

c) Scrips offerring regular income:

        (i)   Post Office Monthly Income Scheme

 (ii) Deposit Scheme for Rretired Government Employees/Retired Employees of Public Sector Companies

d) Scrips for regular savings

     (i) Post Office Recurring Deposit Scheme

e) Fixed Deposit  Scrips

     (i) 1 Year Post Office Time Deposit

    (ii) 2 Year Post Office Time Deposit

   (iii) 3 Year Post Office Time Deposit

    (iv) 5 Year Post Office Time Deposit

7.  The rate of  interest offered on various small savings  scrips  are decided  by the Government of India.     The  Government of India has reduced the rate  of  interest of the small savings scrips w.e.f. 1.3.2002. The details are summarised below: