Department of Expenditure is one among the important departments of the Government of India. The Department has a number of important functions to perform- it controls the entire expenditure of the Union Government and looks after specified items of work like financial rules and regulations and delegation of financial powers; financial sanctions relating to all Ministries and offices of the Union Government which are not covered by the delegation of authority are taken care of by the Department of Expenditure; the Department also reviews the staffing of the government establishments with a view to securing economy; it gives advice to ministries and government undertakings on cost accounts matters and attending to cost investigation work on their behalf; expenditure proposals relating to Delhi Administration; Indian Audit and Accounts Department; Defence Accounts Department; statutory grants to States and ad hoc grant; financial assistance and loans to them; local taxation; state finance; capital budget; scrutiny of central and state legislation having financial and economic implications; planning and development finance; bureau of public enterprises; making grants to the Indian Institute of Public Administration etc.

The Department is divided into seven units each charged with responsibility to administer a chunk of the work of the Department. These divisions are: Establishment Division, Plan Finance I, Plan Finance II, Finance Commission Division, Comptroller General of Accounts, Cost Accounts Branch, Staff Inspection Unit and Integrated Finance Division.

Establishment Division
The Establishment Division is responsible for economy in Central government expenditure, grants-in-aid, use of Hindi language for Official Purposes, etc. Its Administrative Wing looks after personnel management, office administration, vigilance matters and foreign assignments and training of the officers of the Department.

Plan Finance I
Plan Finance I Division is concerned with all aspects of State Finance. This Division is actively associated with the assessment of financial resources in connection with formulation of Five Year and Annual Plans of States. It also handles matters relating to Centre-State financial relations, centrally sponsored schemes and central plan schemes having a bearing on state`s financial resources, overdraft regulation scheme and related matters, state legislation having a financial bearing, natural calamities etc. It monitors the ways and means and resources position of States on a continuing basis and takes timely action to advise the States whenever they get into ways and means problems. It releases central assistance to States for State Plans, Hill Areas Development programmes and relief in natural calamities.

Plan Finance II
Plan Finance II Division deals with all matters relating to the Central Plan. These cover the estimates of resources for Central Plan including internal and extra-budgetary resources, allocation of outlays among different ministries/departments of the Central government, appraisal of plan projects/schemes before they are submitted to the Public Investment Board (PIB) or Expenditure Finance Committees (EFC) etc. It works as the secretariat of the PIB. The Division also attends to the work relating to wage settlement in various public sector undertakings.

Finance Commission Division
The Finance Commission Division is concerned with all aspects of the recommendations of the Finance Commission.

Comptroller General of Accounts
The Comptroller General of Accounts is the apex accounting authority of the Central government and exercises the powers of the Indian President under Article 150 for prescribing the form of accounts of the Union and State governments. Its functions include the framing of rules and regulations in the field of accounts and internal audit, the publication of account codes and manuals as well as issue of periodical instructions and circulars. The office is responsible for consolidation of accounts of the Union government. It also looks after pensions of the Central government employees. The Central Pension Accounting Office commenced functioning with effect from 1st January, 1990.

Cost Accounts Branch
The Cost Accounts Branch is a pricing organisation of the Central government. As a repository of expertise in cost and management accountancy, it also renders professional assistance to the different Ministries, Committees and other agencies of the Government.

Staff Inspection Unit
The Staff Inspection Unit (SIU) was set up in 1964 with the object of effecting economies in manpower consistent with administrative efficiency and evolving performance standards and work norms in government offices and institutions substantially or wholly dependent on government grants. In the change scenario and keeping in view the Government emphasis on better governance and improved delivery of services, the role of SIU has been re-defined. The SIU has now been positioned to act as catalyst in assisting the line Ministries and autonomous organisations in improving their organizational effectiveness, through improved organizational structure/processes, optimum utilization of resources and focusing on monitorable, measurable outcome and specific deliverables.

Integrated Finance Division
The Integrated Finance Division examines all proposals from financial angle and renders financial advice regarding: creation, continuation and conversion of posts; formulation of new schemes/projects and evaluation of their progress; processing of cases for clearance of standing finance committee, expenditure finance committee, cabinet etc; release of grants to various organizations, institutes, NGOs, subordinate authorities; re-delegation of powers to subordinate authorities; deputations/delegations abroad; preparation and printing of performance budget; interaction with the Ministry of Finance/Department of Personnel and Training.

Thus discussed is the Ministry of Expenditure of the Indian Government.