DUTIES AND RESPONSIBILITIES OF ECONOMIC AFFAIRS BRANCH
Economic Affairs Branch of Finance Department has been entrusted with the following duties and responsibilities:
Fiscal Management and Reforms
The Branch deals with various matter connected with management of the State’s finance. Various policy matters relating to State’s finance and reforms measures thereon are dealt in this Branch.
Management of Public Debt:
The Branch is entrusted with various issues relating to management of public debt of the State Government. This includes availing of all kinds of loans in the nature of Internal Debt, Loans from the Government of India and loans under Public Accounts. Debt servicing in the form of repayment of loans with interests, rescheduling, resetting and swapping of loans are dealt in this Branch.
Mobilization of Financial Resources
The Branch acts as the Nodal Department for mobilizing various resources for financing the State’s Plan and Non-Plan expenditure requirements. It includes activities relating to mobilizing resources on account of State’s own tax and Non-tax resources, Plan and Non-Plan Grants from Central Government and availing of assistance from external funding agencies in the form of Externally Aided Projects (EAP).
External Assistance & Loans
The Branch is entrusted with various matters relating to availing of assistance from external funding agencies, foreign countries and multi-lateral funding agencies. Loan negotiations and connected matters are dealt in this Branch.
Management of Cash Balances:
The Branch is entrusted with management of cash balance in the State Government’s account maintained by Reserve Bank of India, Central Accounts Section, Nagpur. Daily cash balance position and monthly statements of cash position are received from Central Accounts Section, Nagpur. Instruments of Ways and Means Advances and Overdrafts are utilized for regulating cash balance and for meeting mismatches in receipts and expenditure.
Management of Public Accounts:
The Branch has been entrusted with management of funds under Public Accounts like Deposits, Reserve Funds, Suspense, etc. Reserve Funds have been built to meet contingencies of expenditure over medium to long-term framework in the form of Sinking Fund and Guarantee Redemption Fund.
Consolidated Sinking Fund
The Branch has been managing Sinking Funds for amortization of loans.
The Branch acts as the manager of State Government’s guarantee for all loans availed by PSUs, Bonds, Agencies and parastatals. The Branch also set up a Guarantee Redemption Fund for the purpose.