The role of Public Finance (State) Division shall be modified as under

Public Finance (State) Division deals with the matters connected with state finances such as issues relating to release of Additional Central Assistance/Special Assistance to the States for the projects/schemes for which budgetary allocation is provided under the Demand operated by Department of Expenditure. PF (States) Division also deals with Debt and liabilities management of States, enforcement of the fiscal roadmap mandated by Finance Commissions through the powers to approve borrowings by States under Article 293 (3) of the Constitution of India, Coordination with RBI to monitor States’ debt, collating and maintaining state finance data, analysis of trends of State Finances, Scrutiny of State Legislations having bearing on the State's Finances, Continuous monitoring of the resources and Ways & Means position of the States including their overdrafts, Analysis of States Budgets.

Finance Commission Division (FCD)

The Finance Commission Division deals with releases of Finance Commission (FC) grants as per recommendations of respective Finance Commission. The 14th Finance Commission has recommended mainly three types of grants-in aid to States for its award period 2015-16 to 2019-20 i.e. Post-Devolution Revenue Deficit Grant, Local Bodies grants and State Disaster Response Fund (SDRF). FCD also deals with various aspects of National Disaster Response Fund (NDRF) i.e. IMCT visit to states, brief for SC-NEC and HLC and release of central assistance under NDRF based on recommendations of MHA.

Fiscal Reform Unit (FRU)

FRU has been assigned the task to keep track of status of fiscal consolidation under the recommendations made by the respective Finance Commissions for revision in Fiscal Responsibilities and Budget Management Act (FRBMA) and preparation of State-wise data-base thereon.