Financial administration is executed through (a) legislative, (b) the executive, (c) the Finance Department, (d) the audit and (e) the parliamentary committees.
The governmental administration today is called upon to manage the entire affairs of the socioeconomic life of the people. The enormous expansion of public services has led to the expansion of bureaucracy or bureaucratization. After independence, the Government opted for planned economic development with public sector playing a vital role in the development of the country.
The importance given to public sector and planning led to rapid increase in the expenditure of the government. In a democracy, it is imperative for the institutions like the Parliament and State Legislatures to control the expenditure by the executive for the benefit of the people.
The enormous increase in the government expenditure led to formation of an effective control mechanism by the Parliament. Constitution has provided mechanism for effective parliamentary control over public finances.