The Department of Expenditure is the nodal Department for overseeing the public financial management system in the Central Government and matters connected with State finances. The principal activities of the Department include pre-sanction appraisal of major schemes/projects (both Plan and non-Plan expenditure), handling bulk of the Central budgetary resources transferred to States, implementation of the recommendations of the Finance Commission and Central Pay Commission, overseeing the expenditure management in the Central Ministries/Departments through the interface with the Financial Advisors and the administration of the Financial Rules/Regulations/Orders, monitoring of Audit comments/observations, preparation of Central Government Accounts, managing the financial aspects of personnel management in the Central Government, assisting Central Ministries/Departments in controlling the costs and prices of public services, assisting organizational re-engineering through review of staffing patterns and O&M studies and reviewing systems and procedures to optimize outputs and outcomes of public expenditure. The Department coordinates all matters concerning the Ministry of Finance as a whole including Parliament-related work of the Ministry. The Department has under its administrative control the National Institute of Financial Management (NIFM), Faridabad, which is an autonomous body.
The business allocated to the Department of Expenditure is carried out through its Establishment Division, Plan Finance-I and Plan Finance-II Divisions, Finance Commission Division, Public Procurement Division, Direct Benefit Transfer Division, Staff Inspection Unit, Office of Chief Advisor Cost, Controller General of Accounts and the Central Pension Accounting office.