Financial administration, meaning nature and scope of financial administration



Financial administration, 02 F.A. meaning nature and scope of financial administration
Management of finance of the state or government. Collection. Reservation. Distribution.

PUBLIC finance. Deal entire economy.
1.public income 2.public expenditure
3.public dept  4.fin administration
5.fin policy

Significance.. Welfare state. Democracy.
.management technology

Objective.. Financial policy. .avoid wastage. .fixing responsibility

Function. Implementing financial policy. Fin control. Budget preparation. Budget execution .audit

..area.
1.budget preparation
2.budget execution
3.tax administration.
4. Maintaining public account. Control ac(internal admin). ..propriety ac(for legislation) ..supplementary detailed ac(details of assets liability inc exp)
5.audit.  ..appropriation (traditional. Whether spent on accordance to appropriation)  ..propriety(higher audit. Wisdom. Beyond the formalities).  ..regulatory audit(rules and regulations)  ..efficiency audit(efficiency of the agency)

..Scope..fin policy.  ..economic policy ..financial planning.  ..monetary policy. ..performance budget

Agency of fin management
1..ministry. 2..legislature  3..comptroller and auditor general. 4..Parliamentary committee
..public ac comm  ..estimate comm
..comm on pub undertaking

1.PAC setup in 1921
To examine appropriation ac.
Ensures money spent by executive within the scope of demand.
..Recommendations
..ensures accuracy if accounts
..ensure honesty of accounts
 15+7 two years tenure
1950 pac become Parliamentary committee.
1.expert control. Opinion of experts
2.financial control. Misuse
3.judicial. Judge role cag vs fin dept
4.admin control. Transfer and removal of corrupted official
5.post modern control. Misuse of power
6.no parity control. Members do not show party political difference
..Report to parliament
..cannot interfere internal admin of depts.
..cannot disallow any item expended
..policy cannot be questioned

2.estimate committee
.controlling expenditure 30L
..economic impv. Organizational efficiency. ..alternative policy.  Estimate within t limit of policy. 
.bring efficiency in economy
Bring efficiency in administration
..policy matters not within the scope
..report economic improvement
..report to parliament
..report will be thoughtful purpose
..recommendations for the improvements of org

3. Committee on public undertaking
10L 5R. Examine cag report. Day to day admin matter. Efficiency of autonomy

4. Committee on subordinate legislation
.check any tax imposed.  Any overcame of judiciary 

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