Department of Finance (Kerala)

Department of Finance
Department overview
Formed1811 (1811)
JurisdictionKerala
Headquarters
Minister responsible
  • V. D. Satheesan, Minister for Finance, Commercial & Agricultural Taxes, State Treasuries, State Insurance, Stamps and Stamp Duties.
Department executives
  • K.R Jyothilal IAS[1], Additional Chief Secretary (Finance)
  • Keshvendra Kumar IAS [2], Secretary (Finance Expenditure)
  • Patil Ajit Bhagwatrao IAS [2], Secretary (Finance Resources)
Parent department
Government of Kerala
Child agencies
Websitehttp://www.finance.kerala.gov.in/

The Department of Finance is a key ministry that manages the state finances and economy of Kerala. The department is headed by a senior minister who has cabinet ranking as per Indian Cabinet Protocol Laws. The state assembly rules of 1966 ranks the department and its minister as number 3 in official rankings after Chief Minister and Opposition Leader.

The finance department manages and regulates the state economy and finances through taxation, financial legislation, financial institutions, capital markets, center and state finances, and the State Budget.

History

The British Resident and Dewan, John Munro and Rani Lakshmi Bai, as part of their reform and modernization of Kerala's administration between 1811 and 1814, had framed some of the major departments of the Secretariat like Finance, Revenue, Police, etc. A Peshkar (Secretary of the State) was appointed to manage state finances.

In the course of legislative developments in 1865, the foundation stone was laid for the Secretariat building by Ayilyam Thirunal Majaraja. The Secretariat began to function from 23 August 1869. Earlier, the Secretariat was known as Huzur Cutchery, Public Office or Puthen Kacheri. The Finance Department, ever since, has played a major role in governance. (The Secretariat later came to be known as ‘Government Secretariat’, from 25 August 1949, by virtue of Circular no. M3-5412/49/CS).

Unlike other Indian states, Revenue functions of Finance department is separated from the department and maintained as an independent department with another senior cabinet ranking minister, heading the portfolio. This was primarily because of Kerala's long history in keep state revenues as an independent department during monarchical days. During Monarchical days in Kochi and Travancore Kingdoms, most of the land are owned by Royal governments, which has been leased to feudal lords, planters, industrialists, temple bodies and religious congregations for carrying out economic activities in return for fixed revenue. Prior to forming finance department, it was Pandara (also pronounced as Bhandra Dept- Malayalam name of Revenue dept) managing state finances. When separate finance department was formed to formulate state financial policies, expenditure controls, investment opportunities and controlling fiscal deficits, the tax collection and revenue remained as a separate body itself.

Functions

Major functions of the Finance Department include the following

  1. Framing of rules regulating the pay, leave and pension of persons in the service of the Government and rules regulating the number, gradings or cadre and emoluments of posts under the Government and also be responsible for seeing that these rules are properly applied.
  2. Finance Department is responsible for all matters relative to financial procedure and the application of the principles of sound finance.
  3. Advise on the financial aspect of all transactions relating to loans granted by the Government.
  4. Safety and proper employment of Famine Relief Fund and other special funds, if any, and for the administration of Provident Funds, Deposits and Advances.
  5. Examine and report on all proposals for the imposition, increase, reduction or abolition of taxes, duties, cesses or fees.
  6. Examine and report on all proposals for borrowing or giving of a guarantee by the Government and raise such loans as have been duly authorised, Finance Department shall be in charge of all matters relating to the service of loans or the discharge of guarantees.
  7. Ensure that proper financial rules are framed for the guidance of other departments and that suitable accounts, including commercial accounts, whatever necessary, are maintained by other departments and establishments subordinate to them.
  8. Prepare an estimate of the total receipts and disbursements of the State in each year and watching the state of the Government's balances and for their ways and means operations.
  9. Preparation of Budgets and supplementary estimates.
  10. Advise departments responsible for the collection of revenue regarding the progress of collection and methods of collection employed.

About Department

The Department is managed by a senior Minister who has a Cabinet ranking. The Current minister is V.D. Satheesan, the Chief Minister of Kerala.[3] The department is assisted by Finance Secretary and 17 additional secretaries. The Finance Secretary is the senior Indian Administrative Service officer, and has the rank of Additional Chief Secretary to Government.[4]

The Finance Department is headed by the Finance Secretary, who is assisted by the Secretary (Finance Resources) and the Secretary (Finance Expenditure), both Indian Administrative Service (IAS) officers, along with a Special Secretary, 17 Additional Secretaries, the Chief Technical Examiner, 33 Joint Secretaries, 26 Deputy Secretaries, and several Under Secretaries and Section Officers. At the district level, the department has a District Finance Inspection Officer (DFIO) in each of Kerala's 14 districts.[5][6]

Sub departments

Department of Finance has following sub-divisions;

  • Expenditures
  • Budget
  • Resources

The Following are classified as line departments of Finance Department, in which they have direct control;

  • National Savings Department
  • Treasuries Department[7]
  • Kerala State Audit Department[8]
  • Kerala State Insurance Department[9]

The Department of Finance also controls Kerala Financial Corporation, an important agency in leading finance and credit for industrial and agricultural projects for private and public.

Te Finance Department controls the major functions like Budget, Treasuries, Local Fund Audit, Financial Enterprises, State Insurance, etc.

Special wings

  • Finance (Inspection – Non-Technical) Wing – Non-technical financial inspections, audits and examinations of government departments, offices and financial procedures.[10][11][12]
  • Finance (Inspection – Technical) Wing – Technical inspections of projects and expenditure. Provides technical oversight, inspections and advice on government public works and projects.[13][14]
  • Finance (IT Division) Department – Finance IT and e-governance systems.

List of Finance Ministers

References:[15] [16]

Portrait Name Term Chief Minister Party
 V.D. Satheesan 18 May 2026 Incumbent (Himself) INC
 K.N. Balagopal 2021 May 20 2026 May 17 Pinarayi Vijayan CPIM
 T. M. Thomas Isaac 2016 May 25 2021 May 03 CPIM
 Oommen Chandy 10 November 2015 20 May 2016 (Himself) INC
 K. M. Mani 18 May 2011 10 November 2015 Oommen Chandy Kerala Congress (M)
 T. M. Thomas Isaac 18 May 2006 16 May 2011 V. S. Achuthanandan CPIM
 Vakkom Purushothaman 31 August 2004 12 May 2006 Oommen Chandy INC
 K. Sankaranarayanan 17 May 2001 29 August 2004 A. K. Antony INC
T. Sivadasa Menon 20 May 1996 13 May 2001 E. K. Nayanar CPIM
 C.V. Padmarajan 22 June 1994 09 May 1996 K. Karunakaran

A.K. Antony

 INC
 Oommen Chandy 24 June 1991 22 June 1994 K. Karunakaran INC
V. Viswanatha Menon 2 April 1987 17 June 1991 E.K. Nayanar CPIM
Thachady Prabhakaran 5 June 1986 5 March 1987 K. Karunakaran INC
 K.M. Mani 24 May 1982 5 June 1986 Kerala Congress (M)
28 December 1981 17 March 1982
25 January 1980 20 October 1981 E. K. Nayanar Kerala Congress (M)
N.Bhaskaran Nair October 12, 1979 December 1, 1979 C. H. Mohammed Koya National Democratic Party
S. Varadarajan Nair 29 October 1978 7 October 1979 P. K. Vasudevan Nair INC
M. K. Hemachandran 25 March 1977 27 October 1978 K. Karunakaran

A. K. Antony

 INC
 K.M. Mani 26 December 1975 25 March 1977 C. Achutha Menon Kerala Congress (M)
K.G.Adiyodi 16 May 1972 25 December 1975 INC
K.T. George 25 September 1971 3 April 1972
N. K. Seshan 1 November 1969 2 April 1970 Socialist Party
P. K. Kunju 6 March 1967 13 May 1969 E. M. S. Namboodiripad Praja Socialist Party
 R. Sankar 26 September 1962 10 September 1964 Himself INC
22 February 1960 26 September 1962 Pattom A. Thanu Pillai
C. Achutha Menon 5 April 1957 31 July 1959 E. M. S. Namboodiripad CPI

See also

References

  1. ↑ ":: Finance Department :: Government of Kerala".
  2. 1 2 https://finance.kerala.gov.in/whoswho.jsp
  3. ↑ "VD Satheesan keeps finance, law, Chennithala takes charge of Home in Kerala cabinet". Hindustan Times. 21 May 2026. Retrieved 3 July 2026.
  4. ↑ "Finance Department, GoK".
  5. ↑ "Kerala govt. to appoint Integrated Financial Adviser in every department". The Hindu. 17 June 2026. ISSN 0971-751X. Retrieved 3 July 2026.
  6. ↑ ":: FINANCE DEPARTMENT :: GOVERNMENT OF KERALA". finance.kerala.gov.in. Archived from the original on 10 October 2025. Retrieved 3 July 2026.
  7. ↑ "Department of Treasuries, Kerala". portal.treasury.kerala.gov.in. Archived from the original on 17 May 2026. Retrieved 26 July 2026.
  8. ↑ "KSAD – Kerala State Audit Department". Retrieved 26 July 2026.
  9. ↑ "About us – KSID". insurance.kerala.gov.in. Retrieved 26 July 2026.
  10. ↑ Vellaram, Sandeep (17 September 2025). "Financial irregularities found at Kerala's Periyar Tiger Reserve". The Hindu. ISSN 0971-751X. Retrieved 19 June 2026.
  11. ↑ https://www.finance.kerala.gov.in/lndptWng.jsp?finnt
  12. ↑ "Report flags irregularities in distribution of special adhesive stamps in Idukki". The Hindu. 27 June 2025. ISSN 0971-751X. Retrieved 19 June 2026.
  13. ↑ S, Shan A. (17 May 2021). "Don't use deparment vehicles for personal use: Kerala government". The New Indian Express. Retrieved 19 June 2026.
  14. ↑ Vidyanandan, M. S. (3 November 2019). "PWD officers, contractor join hands to cheat government of Rs 1.47 crore". The New Indian Express. Retrieved 19 June 2026.
  15. ↑ "Business- Kerala Legislature". www.niyamasabha.org. Retrieved 21 April 2026.
  16. ↑ "Members - Kerala Legislature". www.niyamasabha.org. Retrieved 20 April 2026.

Sources

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