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 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. Finance Department is responsible for all matters relative to financial procedure and the application of the principles of sound finance. Advise on the financial aspect of all transactions relating to loans granted by the Government. Safety and proper employment of Famine Relief Fund and other special funds, if any, and for the administration of Provident Funds, Deposits and Advances. Examine and report on all proposals for the imposition, increase, reduction or abolition of taxes, duties, cesses or fees. 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. 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. 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. Preparation of Budgets and supplementary estimates. 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. 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.
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.
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 Kerala State Audit Department Kerala State Insurance Department
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.https://www.finance.kerala.gov.in/lndptWng.jsp?finnt Finance (Inspection – Technical) Wing – Technical inspections of projects and expenditure. Provides technical oversight, inspections and advice on government public works and projects. Finance (IT Division) Department – Finance IT and e-governance systems.
List of Finance Ministers References: Portrait NameTerm Chief MinisterPartyV.D. Satheesan 18 May 2026Incumbent(Himself)INCK.N. Balagopal2021 May 202026 May 17Pinarayi VijayanCPIMT. M. Thomas Isaac2016 May 252021 May 03CPIMOommen Chandy10 November 201520 May 2016(Himself)INCK. M. Mani18 May 201110 November 2015Oommen ChandyKerala Congress (M)T. M. Thomas Isaac18 May 200616 May 2011V. S. AchuthanandanCPIMVakkom Purushothaman31 August 200412 May 2006Oommen ChandyINCK. Sankaranarayanan17 May 200129 August 2004A. K. AntonyINCT. Sivadasa Menon20 May 199613 May 2001E. K. NayanarCPIMC.V. Padmarajan22 June 199409 May 1996K. Karunakaran A.K. AntonyINCOommen Chandy24 June 199122 June 1994K. KarunakaranINCV. Viswanatha Menon2 April 198717 June 1991E.K. NayanarCPIMThachady Prabhakaran5 June 19865 March 1987K. KarunakaranINCK.M. Mani 24 May 19825 June 1986 Kerala Congress (M)28 December 198117 March 198225 January 198020 October 1981E. K. Nayanar Kerala Congress (M)N.Bhaskaran Nair October 12, 1979December 1, 1979C. H. Mohammed KoyaNational Democratic PartyS. Varadarajan Nair29 October 19787 October 1979P. K. Vasudevan NairINCM. K. Hemachandran25 March 197727 October 1978K. Karunakaran A. K. AntonyINCK.M. Mani 26 December 197525 March 1977C. Achutha Menon Kerala Congress (M)K.G.Adiyodi16 May 197225 December 1975INCK.T. George25 September 19713 April 1972N. K. Seshan1 November 19692 April 1970Socialist PartyP. K. Kunju6 March 196713 May 1969E. M. S. Namboodiripad Praja Socialist PartyR. Sankar26 September 196210 September 1964HimselfINC22 February 196026 September 1962Pattom A. Thanu PillaiC. Achutha Menon5 April 195731 July 1959E. M. S. NamboodiripadCPI
See also Department of Taxes (Kerala) Department of Revenue (Kerala) Department of Home (Kerala) References
Sources http://www.finance.kerala.gov.in (Official Website of the Finance Department, Kerala) https://web.archive.org/web/20060118031516/http://www.kerala.gov.in/ (Official website of Govt. of Kerala)