| Agency Name: | Department of Finance of State of Kerala |
| Nativename: | കേരള ധനകാര്യ വകുപ്പ് |
| Nativename R: | Dhanakarya Vakkuppu |
| Type: | Department |
| Jurisdiction: | Kerala |
| Headquarters: | Thiruvananthapuram |
| Minister1 Name: | K. N. Balagopal |
| Minister1 Pfo: | Minister for Finance, Law, Commercial & Agricultural Taxes, State Treasuries, State Insurance, Stamps and Stamp Duties, Housing. |
| Chief1 Name: | Bishwanath Sinha IAS[1] |
| Chief1 Position: | Additional Chief Secretary, Revenue |
| Child1 Agency: | National Savings Department |
| Child2 Agency: | Treasuries Department |
| Child3 Agency: | State Insurance Department |
| Child4 Agency: | State Audit Department |
| Website: | http://www.finance.kerala.gov.in/ |
The Department of Finance is a key ministry that manages the state finances and economy of the State 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.
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.
Major functions of the Finance Department include the following
The Department is managed by a senior Minister who has a Cabinet ranking. The Current minister is K. N. Balagopal. The department is assisted by Finance Secretary and 14 additional secretaries.
Department of Finance has following sub-departments;
The Following are classified as line departments of DOF, in which they have direct control
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.
The Finance Department controls the major functions like Stores & Purchase, Commercial Taxes, Agricultural Income Tax, Treasuries, Lotteries, Local Fund Audit, Financial Enterprises, State Insurance, Stamps & Stamp Duties etc.