(Last Updated on : 13-08-2014)
Department of Economic Affairs is known to be the nodal agency of the Union Government and works under the Right to Information (RTI) Act. The main activity of the department is to prepare the Union Budget annually, except the railway budget. This monitoring of economic system of the country is highly linked with the Capital market, which includes Stock Exchange. It plays a cardinal role in increasing the external resources with the help of multilateral and bilateral official development assistance, and manufacturing of bank notes and coins. The department of economic affairs also works for raising the internal resources with the help of taxation, market lending and so on.
The Department of Economic affairs monitors current economic trends and advises the Government on all matters having bearing on internal and external aspects of economic management including, prices, credit, fiscal and monetary policy and investment regulations. This Department also supervises policies relating to Nationalised Banks, Life and General Insurance besides managing Government of India Mints, Currency Presses, Security Presses and Security Paper Mills. All the external financial and technical assistance received by India, except through specialised International organisations like FAO, ILO,UNIDO and except under international/bilateral specific agreement in the field of science and technology, culture and education are also monitored by this Department. The DEA is also responsible for preparation and presentation to the Parliament of Central Budget and the Budgets for the State Governments under President's Rule and Union Territory Administrations.
The main divisions of the Department of Economic Affairs are: Finance Division, Budget Division, Banking and Insurance Division, Capital Market, Bilateral Co-operation, Foreign Trade, Fund Bank Division, Infrastructure Division, Administrative Division, Fiscal Responsibility and Budget Management (FRBM) and Administration, Controller of Aid, Accounts and Audit and Economic Division.
Functions of Department of Economic Affairs
It formulates as well as monitors the economic life of the country at macro level that is connected with the Capital Market inclusive of Stock Exchange;
It manages both the internal and external aspects of the economic policies and programmes of the country;
The department prepares the Union Budget on a yearly basis exclusive of the Railway Budget system;
It also lifts up external resources of the country's economy with the help of multilateral and bilateral official development assistance along with commercial borrowings from overseas countries, foreign direct investments, preserving foreign exchange resources, and balance of payment;
The department contributes in raising the internal resources of the country's economy with the help of market borrowings, taxation, gathering of small savings, and ordinance of money supply system;
It plays a cardinal role in manufacturing bank notes and coins available in varied denominations;
It also makes available the postal stationery, postal stamps, and many more;
The department of economic affairs takes substantial interest in cadre management, career planning and training of the Indian Economic Service (IES);
It is highly responsible for the disbursement of loans as well debt servicing of the loans;