Chapter on Finance

IAS Prelims 2023

The Ministry of Finance is responsible for administration of finances of the Government. It is concerned with all economic and financial matters affecting the country as a whole including mobilization of resources for development and other purposes. It regulates expenditure of the Government including transfer of resources to the states. This Ministry comprises 5 departments namely:

  1. Economic Affairs
  2. Expenditure
  3. Revenue
  4. Disinvestment
  5. Financial Services

 ECONOMIC GROWTH

  • As per the provisional estimates, released by the Central Statistics Office, the growth rate of Gross-Domestic Product (GDP) at factor cost at constant (2004-05) prices is estimated at 4.7% in 2013-14.
  • Gross domestic saving as proportion of GDP at current market prices is estimated at 1% in 2012-13.
  • Gross capital formation is estimated to be 8% of the GDP at current prices in 2012-13.

AGRICULTURE

  • The overall area coverage is 02 lakh hectares under foodgrains during 2013-14 as compared to 1207.76 lakh hectares during 2012-13.
  • This represents a significant increase of 39.27 lakh hectares in the area coverage as compared to the last year.
  • There has been an increase of:
  • 01lakh hectares area coverage under rice
  • 85 lakh hectares in area coverage under coarse cereals and pulses
  • 99 lakh hectares under oilseeds
  • Sugarcane has marginally increased to 50.32 lakh
  • Area coverage under cotton has slightly declined.

 INDUSTRY

  • The Index of Industrial Production (IIP) based industrial growth during 2013-14 was (-) 0.1% compared to 1.1% growth achieved in the previous year.
  • Out of the three broad sectors, while electricity sector recorded the highest growth during 2013-14.
  • The mining and the manufacturing sectors recorded negative growth during this period.
  • The electricity sector grew at 6.1%, however, the mining and the manufacturing sectors declined by 0.6% and 0.8% during 2013-14.
  • The capital goods sector recorded negative growth, both during 2013-14 (-3.6%) as well as 2012-13 (-6.0%).
  • In terms of industries, 10 out of the 22 industry groups (as per 2-digit NIC-2004) in the manufacturing sector have shown negative growth during 2013-14.
  • The industry group ‘Radio, TV and communication equipment and apparatus’ has shown the highest negative growth of (-)27.3%, followed by (-)15.7% in ‘Office, accounting and computing machinery‘ and (-)13.8% in ‘Furniture Manufacturing“.
  • On the other hand, the industry groups ‘Wearing apparel, dressing and dyeing of fur’ has shown the highest positive growth of 20.7% followed by 14.5% in ‘Electrical Machinery and Apparatus’ and 9.0% in ‘Chemicals and Chemical Products‘.

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