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Ministry

Ministry of Finance

The Ministry of Finance is the Government of India's apex economic department. It prepares the Union Budget, sets tax and expenditure policy, manages public borrowing and disinvestment, and oversees the financial sector. Working through five departments, it is the institution that translates economic strategy into the government's spending, taxation and borrowing.

Updated

Headquarters
North Block, New Delhi
Departments
5 (Economic Affairs, Expenditure, Revenue, Financial Services, DIPAM)
Key event
Union Budget (annual)

Role

The Ministry of Finance sets the government’s economic direction through the annual Union Budget and the policies around it. Its five departments divide the work: Economic Affairs (macro policy, markets), Expenditure (spending), Revenue (taxation), Financial Services (banks and insurance), and DIPAM (disinvestment). It works alongside — but distinct from — the Reserve Bank of India, which owns monetary policy.

Desk maintained by IndiaStand editorial cycles.

Timeline since 1947

  1. reference

    Ministry of Finance constituted

    Took over the fiscal machinery of the state at independence.

  2. reference

    Liberalisation reforms

    The balance-of-payments crisis drove landmark liberalisation of trade, industry and finance.

  3. reference

    Goods and Services Tax introduced

    GST unified a fragmented indirect-tax system into a single nationwide regime.

Frequently asked

What is Ministry of Finance?
The Ministry of Finance is the Government of India's apex economic department. It prepares the Union Budget, sets tax and expenditure policy, manages public borrowing and disinvestment, and oversees the financial sector. Working through five departments, it is the institution that translates economic strategy into the government's spending, taxation and borrowing.
When was Ministry of Finance established?
Ministry of Finance was established 1947.
What does Ministry of Finance do?
Its remit covers The Union Budget and fiscal policy, Taxation (direct and indirect / GST), Public expenditure and borrowing, Financial-sector policy and public-sector banks, Disinvestment and asset management (DIPAM).

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