Updated By: LatestGKGS Desk
Financial Administration and Financial Management
Financial Administration, Leadership & Control Of A Group's Efforts and Financial Management
Financial administration is the higher level or the father figure of Financial Management. It concerns itself with the overall determination of policies, setting of major objectives, the identification of general purposes and laying down of broad programmes and projects.
It provides guidance, leadership & control of a group's efforts for some common goals. It is done through elected representatives of people, that is Ministers and Parliament assisted by civil servants.
Whereas, Financial Management involves understanding, initiating and bringing together the various elements; coordinating, actuating, integrating the diverse organizational components while sustaining the viability of the organization towards some pre-determined goals laid down by Financial Administration. In other words, it is the art of getting things done through & with the people in formally organized groups.
Financial Management (which is carried out through the Finance Ministry's Department of Expenditure) is concerned with what happens after the political and legislative processes are done with, and finance/revenue has been appropriated as per the Budget.
It is concerned with the employment of management techniques of financial management in disbursing, accounting and auditing of the finance/revenue given out to the requisite departments and ministries for implementation/administration of the Budget under the aegis of the Finance Ministry.
