(i) The Cabinet formulates government policies, both national and international. It takes decisions on major issues before the nation relating to defence, security, development, planning, financial matters, etc.
(ii) After the policy decision of the Cabinet is taken, it becomes the duty and an important function of the appropriate department under a Minister to faithfully carry out the decision. He must administer his department in accordance with the polity decision and in coordination with other departments.
(iii) The Cabinet coordinates the working of all the departments, so that the whole government runs smoothly and set goals are achieved. The Prime Minister plays an important role in bringing about the coordination.
(iv) Foreign relations, both diplomatic and trade, pacts or agreements with other nations are all decided by the Cabinet. The choice of diplomatic envoys and recognition of new states or regimes is also made by the Cabinet.