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       The Finance Department is one of the major Departments of the Karnataka Government Secretariat. It is responsible for management of finances of the State Government starting from mobilization of resources- raising Tax and Non-Tax Revenue, borrowing from different sources like internal debt, Small Savings and Provident Fund etc. and efficient use of resources through formulation of Annual Budget and execution of Budget, Public Expenditure Management, keeping account of Receipt into and Expenditure from the public account of the State, ensuring Accountability of Public money through internal audit and compliance to external audit. It also renders Financial advice, acts as a referral Department in the matter of conditions of service & pension, facilitates Credit from Banks and Financial Institutions.


Organization of The Department:
         Presently, the Hon’ble Chief Minister is holding the portfolio of the Finance Department. The Additional Chief Secretary to Government is the head of the Department. The Additional Chief Secretary is assisted by 1 Principal Secretary, 1 Secretary,1 Additional Secretaries, 10 Deputy Secretaries, 2 Joint Secretary, 1 Joint Controller (Financial Management), 1 Joint Director (PMU), 3 Special Officers, 1 Head of the Legal Cell, 18 Under Secretaries and 35 Sections Officers beside Group C and D employees. The Finance Department carries out its function as prescribed in the Karnataka Government (Transaction of Business) Rules, 1977 The following Departments and Boards / Corporations come under the administrative control of the Finance Departments.

                     1.Commercial Taxes Department
                     2.Excise Department
                     3.Karnataka State Audit and Accounts Department
                     4.Treasury Department
                     5.Pension, Small Saving and Asset-Liability Monitoring
                     6.Karnataka Government Insurance Department
                     7.Karnataka State Finance Corporation
                     8.Karnataka State Beverages Corporation Ltd
                     9.Fiscal Policy Institute



       Commercial Taxes Department is one of the wings of the Finance Department, Karnataka Government Secretariat. In order to improve the delivery of its services, the department has envisaged the Citizens Charter. The Charter aids the department in its Vision, Mission, Objectives, standards for delivery of services and achievement of excellence in the implementation of tax policies. To build an atmosphere that encourages and incentives self-compliance of tax laws and to mobilize revenue in an efficient manner while maintaining equity.



          Excise Department in Karnataka is the second largest revenue earning Department in the state functionary under the administrative control of the Finance Department. The scope of the State Excise Administration covers commodities such as Spirit, Indian Made Liquor, Beer, Medicinal and Toilet preparations etc., The objectives of the department can be summed up as ensuring public health through regulated procurement of raw-materials, manufacture of various commodities by use of these raw-materials, their storage and distribution. Implementing State Excise policies and procedures by regulating manufacture, transport, possession, sale and other activities of the trade in spirit, spirituous preparations, potable liquor and other intoxicants, and monitoring collection of associated taxes.



       Karnataka State Audit and Accounts Department is functioning as a major Department under the direct control of Finance Department. Karnataka State Audit and Accounts Department has been conducting the audit of Accounts of ULB’s/GP’s/Statutory Boards/Corporations/Universities and other autonomous bodies along with the special audit of any institute/Department under the direction of the state government.  



        Treasuries are the primary units of the State Government’s fiscal system and the points at which public accounts begin. Treasuries conduct transactions of Government money, both receipts and payments and render proper accounts of these transactions to the Accountant General. The Department of Treasuries is under the administrative control of the Finance Department. The Director of Treasuries is the Chief Controlling Authority for the Treasuries Department.Constitution of the Treasuries: Each District houses a Treasury located in the District Headquarters. Each taluka Headquarters has a Sub-Treasury. There are also One-Man/full fledged Treasuries for the convenience of the public located in remote places. All these Treasuries come under the supervision and control of the Directorate of Treasuries.



         Investment Tracking & Realization, Small Savings and State Lottery Department was renamed as “Directorate of Pension, Small Savings and Asset-Liability Monitoring” on 21/04/2010 & Redressal of Pensioners grievances was added to the existing work. Pension payment to Municipal Employees has been attached to the Department. The Department is working under the Finance Department & at present deals with. Small Savings – Renewal and Cancellation of Small Savings Agencies,Computerization of Asset-Liability Monitoring,Redressal of pensioner’s (Retired Government employees only).



       K.G.I.D. transacts Compulsory Life Insurance Scheme as per Karnataka Government Servants (Compulsory Life Insurance) Rules 1958 and Motor Insurance Scheme of Government vehicles & vehicles owned by Boards, Corporations, Municipalities etc., and vehicles in which Government has substantial financial interest are being Institutions. Municipal Corporations and other Local Bodies are maintained in the Department: The Karnataka Government Servant’s Group Insurance Scheme is also administered by Finance Department Government of karnataka.



         It is a major financial institution financing trade and industry in the State. It is assisting Small scale Medium scale and other Sectors through term loans etc., The Corporation is also assisting weaker section of society and first generation entrepreneurs. Besides, various interest subsidy schemes announced by the State Government is also being implemented. The timely assistance of the corporation has helped growth of Small scale and Medium scale sectors Land trade and commerce in the State.



         Karnataka State Beverages Corporation Limited Comer under the Administrative control of the Finance Department of the Government of Karnataka. It was incorporated as a private limited company on 02.06.2003 under the companies Act. The main objective by the corporations are to provide equitable and transparent channelizing and distribution of duty paid liquor in the State of Karnataka which enhances the Government Revenue on the one hand and prevents evasion of excise duties and fees and also Provide genuine products to the end consumer. Provide timely and seamless quality service with least cost to the suppliers, retailers and other stakeholders.



          The Government established The Government established the Fiscal Policy Institute (FPI) in 2007. The setting up of FPI signifies the commitment of the State to institutionalize the process of implementing the Karnataka Fiscal Responsibility Act-2002.Fiscal Policy Institute is one of the key institutional structures for promoting informed decision-making within the state government. Its primary mandate is to evaluate. On a continuous basis, immediate and long term impact of fiscal policy. Procedural and regulatory decisions on the mobilization, allocation and utilization of public resources during the project period. The cell acts as the analytical brain providing inputs and analytical support for the ongoing reform program. 


Last Updated: 21-07-2023 01:34 PM Updated By: Finance Department

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