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Finance Department
Department / Office Profile

List of Subjects allocated


Major Function of Finance (A.F.) Department A.F. in Finance (A.F.) stands for Audit & Funds. As the same suggest this Department deals in matters relating to Audit and Funds. Audit matters includes:- Inspection Report, Draft Paragraphs, C&A.G. Reports, Arrear in accounts of PSUs. The Department acts as a monitoring authority in these matters and all correspondences regarding these matters are recorded in the Department. The Department also issues relevant instruction to the Departments in connection with these matters.

Audit Committees:-
(1) Audit Committee Meetings – The Department depute a representative to the meetings for settlement of Inspection Reports.
(2) DAAC (Departmental Audit & Accounts Committee) – The Department issues instructions to all Departments to convene meetings and to settle matters relating to Audit.
(3) SAAC (State Audit & Accounts Committee) – Under the Chairmanship of the Chief Secretary, a State Level Committee meeting is convened every year with the Principal Accountant General (Audit) for settlement of Draft Paras relating to Audit of various Departments.

(1) G.P.F. - The Department conveys approval in respect of GPF applications in accordance to the Meghalaya GPF Rules, 1985.
(2) C.E.A. (Children Education Advance) – The Department provides funds for allotment of Children Education Advance to Govt. Employees every year.
(3) H.B.A. to A.I.S. Officers – The Department provides fund for allotment of House Building Advances to AIS Officers every year. (4) Ex-gratia payment - Fund is provided for payment to employees who died in harness.

(1) Air journeys – This Department also conveys approval for air journeys performed on other purposes for e.g. Training, Study tour, etc.
(2) T.A. – The Department also deals with T.A. claim as per TA Rules. Mileage Allowance is also included in the TA/DA for different types of vehicles of officers used for official tours only.
(3) House Rent Allowance – The Department conveys approval to claim on House Rent Allowance as per rate fixed by Finance (P.R.) Department vide No. F(PR)48/2009/1, dated 17th September, 2009.
(4) Write Off – All matters relating to write off has to be approved by this Department.
(5) A/C Bills (Abstract Contingency Bills) – Finance (A.F.) Department conveys approval in respect of A.C. Bills moved by different Department with instruction that the bills are to be regularized within a period of one month.
(6) Medical Treatment – The Department conveys approval to air journeys performed on Medical Treatment outside the State.
(7) Arrear Pay – All claims for arrear pay has to be approved by this Department.
(8) Facilities of Ministers, Parliamentary Secretaries, Chairman, Co-Chairman, Vice-Chairman and Deputy Chairman – These orders/circulars are revised by this Department from time to time. (9) Telephone Connection – The Department also conveys approval to telephone connection for entitled officers. (10) Foreign Tour.


All matters relating to pension/Gratuity, etc.


  1. Detailed Budget Estimates and Budget Grants.
  2. Supplementary Demands and Appropriations.
  3. Contingency Fund—Regularisation of Advance from;
  4. Excess Demands and Grants.
  5. Appropriation Bills-
  6. Matters relating to Budget Manual,
  7. Follow up action concerning verification of Departmental Accounts.
  8. Follow up action concerning Audit Reports and Appropriation Accounts and Reports of the Public Accounts Committee.
  9. Classification of Receipts and Expenditure.
  10. Matters relating to Treasuries and Small Savings including their establishments.
  11. Government Guarantees.


Functions & Objective: Finance (Economic Affairs) Department functions under the Principal Secretary, Finance Department. The Department is primarily meant for effecting proper financial administrator in the State. The main functions of the Department are indicated below:–

(a) Preparation of skeleton Budget in respect of Non-Plan budget of the State and assisting Finance (Budget) Department in preparation of Annual Statement and of the Budget Memorandum besides preparation of detailed lists of a number of major head or receipts and expenditure and “Budget at a glance”.
(b) Preparation of forecast of resources for the Five Year Plan and the Annual Plan of the State and mid-term review of the same.
(c) Watching the flow of revenue such as release of Art. 275 grants, share of Central Taxes, on-account payment of Central Assistance for State Plan Schemes, Ways and Means Advance for Centrally Sponsored Schemes, Central Sector Schemes and N.E.C. Plan Schemes.
(d) Watching the flow of receipts and out goings, finding out resources for the State and monitoring the reports on collection of taxes and loans.
(e) Watching the progress of small savings collection claim of reimbursement from the Government of India by the Department concerned.
(f) Introduction and enforcement of Economy Measures, Financial Control and Discipline.
(g) Finding resources for meeting additional requirements under Non-Plan sector.
(h) Watching the share between the State Government and the District Councils on Motor Vehicles Tax/ Royalties on Minor/Major/Professional Tax etc.
(i) Commission on Inter State Relation Inter State Council.
(j) National Commission on Urbanization
(k) Schemes of Finance for power and transport.
(l) Financial Resources of MSEB / MTC matters relating to.
(m) Watching the release of non-plan grant by Government of India and follow up action for preferring claims by the Department, such as Border Roads, Jails, Civil Defence and Home Guards, etc.
(n) Policy etc on Natural Calamities following on the recommendation of the Finance Commission and watching the release of Central share by the Government of India.
(o) Fixation of the rate of interest on various loans sanctioned by the State Government.
(p) Matter relating to Additional Resources Mobilization.
(q) Dearness Allowances etc. Financial matters.
(r) Dealing with outside file that come from Finance (C) Department for the purpose of release of funds/additional requirements.


(i) Watching and monitoring the daily cash balance position of the State Government.
(ii) Monitoring the daily Advices from the ministry and Clearances memos from Reserve Bank of India on daily basis.
(iii) Monitoring the report on investment of Cash Balance and Government of India Treasury Bills.
(iv) Preparation of Monthly forecast on receipts and expenditure of the State Government.
(v) Arranging temporary Ways and Means. Advance either from the R.B.I. or from the Government of India in the event/likelihood of shortfall of cash position of the State and regulation of overdraft. (vi) Maintenance of ledgers for all loans raised from the market Government of India, L.I.G., G.I.C, N.C.D.C., N.A.B.A.R.D. etc. and arranging for timely repayment of principal and interest with a view to avoid penal interest.
(vii) Make arrangement for floatation of market loan etc.
(viii) Investment in Government of India securities matters connected to.
(ix) Scarcity of Coins and Demonetization of Currency Action whereon.
(x) Shortage of cash in the Banks, arrangement of remittances.
(xi) Monthly closing balance statement from R.B.I. and the A.G. matters relating to.

(i) Analysis the trends in the non-plan receipts and expenditure of the respective Departments.
(ii) Follow up action on the recommendation of Finance Commission
(iii) Collect and update information on various items relating to state economy including financial working of the state enterprises.
(iv) Collection and compilation of data/information and preparation of forecast of receipts and expenditure and memorandum for submission to the Finance Commission.

(i) Act as Nodal Department between the Nationalized Banks and the State Government Department in respect of any matters between the State Government and the Banking Institution.
(ii) Follow-up action for the expansion of banking network in the State for the purpose of increasing credit/deposit ratio opening of bank branches at different centres of the state.
(iii) Laison with all the Banking and Financial Institutions operating in the State Monitor and was the progress of development in the implementation of State Government’s link with Bank Finance.
(iv) Involves itself closely in all District Consultative Committee, State Level Bankers Committee and all other banking/financial institutional fora.
(v) Closely monitor and watch the implementation of the District Credit Plans and other bankable Scheme over and above linkages of Government sponsored schemes with bank finance for the improvement of the economic conditions of the poor people.

(i) To take action to ensure flow of institutional credit in the State and closely monitoring the same investment in the flow of credit to the State.
(ii) To interact with the Banking institution and other financial institution and to sort out problems investment in the flow of credit to the State.
(iii) To monitor and watch the function and operation of Non Bank Financial Company (NEFC) in the State.
(iv) Monitoring the expenditure on Non-Plan schemes.
(v) Monitoring the collection of Taxes, duties under different taxation and recoveries of loan and advances and measures for improvement. (vi) Monitoring the progress of sanction for implementation of expenditure under Non-Plan/Plan.
(vii) Monitoring monthly, quarterly return on
(a) Collection of arrears and current demand of taxes and non tax revenue.
(b) Collection of arrears and current demand of loans and advances.
(c) Data collection, compilation for incorporation in the report of the comptroller and Auditor General of India.
(d) Matters connected with short term loans for agricultural inputs and recovery loans sanctioned by the State Government to Government Department/Public Undertaking etc.

ACCOUNTS BRANCH: Collection/Compilation of Audit Certificates/expenditure figures of Plan Schemes (State Plan, Centrally Sponsored Schemes, Central Plan Schemes, N.E.C. Schemes) from the implementing Department A.G. in respect of grant and loans received form the Central Government.

(i) Monitor the functions and performance of all public enterprised establishments in the State with particular reference to the internal resources of the Public Enterprises and their contribution towards the State Plan.
(ii) All matters relating to meeting etc. of the State Public Sector Undertakings, Government Agencies Companies where Finance Secretary is a Director/Member of the Board of Management.

(i) All establishment matters relating to Research Wing of the Department.
(ii) Examination and Clearance of all proposals of other Department routed through Finance (FC) relating to implementation of schemes under Centrally Sponsored /Central Sector Schemes, N.E.C. Scheme and non-plan expenditure, additional expenditure and investment in Public Sector Undertakings, Autonomous Bodies etc.


The Department functions as a referral Department for interpretation of Fundamental Rules and Subsidiary Rules. Financial Rules and all State Services and Delegations of Financial Power Rules concerning all the employees under the State Government. It also deals with all the establishment and service matters of the members of the Meghalaya Financial Service, Meghalaya Accounts Service, Meghalaya Audit Service. Beside the Department also deals with the matters relating to the Directorate of Accounts & Treasuries and Examiner of Local Accounts being the two Directorates under its control with their establishment. Deputations (duty) allowance for Foreign Service, Permanent Absorption, Scrutiny of the Service Rules, Fixation of Pay of all State Govt. Employees under FRs and SRs and U.G.C. scale of pay, declaring of officers as DDO, Joining Time, Fees, Honorarium and Special Pay in certain cases only, Shift Allowance to the Govt. Lecturers in Govt. Colleges also fall within the ambit of function of the Department. Besides these, the Department also deals with re-employment on contract basis, regularization of the period of suspension, matters relating to allowances, dual charge arrangement, deputation of training within India and abroad, leave and surrender of earned leave, grant of study leave and regularization of the Service of work-charged employees. Further, the Department also deals with the newly subjects of Cyber Treasury, Govt. Employees Database, National e-Governance Plan, RTI cases that relates to Finance, matter relating to Banks.

E.C. in Finance (EC) stands for Expenditure Control and is divided in two Departments viz, (1) Finance (EC-I) Department and (2) Finance (EC-II) Department

Finance (EC) Department is dealing with the subjects:

  1. Sanction of expenditure on Plan and Non Plan Schemes (including CSS, NEC, NLCPR etc) of various Government Departments.
  2. Yardsticks for creation of posts of various categories in different offices of the State Government.
  3. Creation of Temporary Posts (Both Gazetted and Non Gazetted).
  4. Permanent Retention of Temporary Posts which are in continuous existence for 5 years and above (Gazetted and Non Gazetted).
  5. Sanction of Re-appropriation, Advance Contingency Fund and acceptance of Supplementary Demand.
  6. Surrender of Savings of various Offices/Departments.

The functions of the Finance (Expenditure Control) Department is to scrutinize the proposals/schemes received from various Government Departments/Offices like Budget provision, Head of Accounts, Overview Statement, Approval of Competent Authority, Ministers in-charge/approval, Plans and Estimates duly countersigned by the Competent Authority etc.


Finance (Pay Revision) Department, as its very name suggests, mainly deals with matters relating to revision of pay scale and allowances of State Government Employees and other allied matters recommended by the Pay Commissions from time to time, as well as checking and approval of pay fixation of the employees and anomalies in pay arising thereof it also deals with regularization of the services of work charged employee, proposals relating to up-gradation of posts, compensation for holidays foregone) matters relating to Assured Career Progression Scheme and any other proposal that may be referred by other Departments for views/comments.

Functioning only at the Secretariat level and dealing solely with service matters and welfare of the government employees, the Department does not administer or implement schemes/development programmes and thus, it has no physical or financial targets.


The functions of the Examiner of Local Accounts are as follows :-

1. Audit :-

(a) Statutory function :- The statutory function of the Examiner is to conduct audit based on the provisions of the Assam Local Fund (Accounts and Audit) Act, 1930 and the Rules and Instructions framed there under as adapted by the Government of Meghalaya. The following are the main accounts to be audited which came under the purview of the Examiner under the Act.
(i) Accounts of the Municipal Boards and Town Committees.
(ii) Accounts of the Autonomous District Councils in respect of utilization of Government grants.
(iii) Accounts of all Govt. Aided Educational Institutions (Schools and Colleges)
under the deficit system and adhoc system of grants-in-aid and Meghalaya Board of School Education, Tura.

2. Special Audit :- To conduct special audit on the accounts of any Govt.
Offices and local bodies as and when entrusted by the Govt.

3. Checking and approval of fixation of initial pay under various Revisions of Pay Rules in respect of :-
(i) Employees of Govt. Aided Educational Institutions under the deficit system of grants-in-aid.
(ii) Employees of Shillong Municipal Board

4. Finalization of Death-cum-retirement gratuity (D.C.R.G) claims of retired/ deceased employee of :-
(i) Govt. Aided Educational Institutions under the deficit system ofgrants-in-aid
(ii) Shillong Municipal Board

Other Informations

N. B. — With the exception of the List of Subjects deal with by in Finance (Budget , Finance (Estt.), Finance (APT). Finance (E.A.) Finance (Revision of Rules), and Finance (Pay Revision), Finance (E. G.) Department has to deal with other subjects involving expenditure sanction.