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Question

Write the features of departmental undertakings.

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Solution

1. Direct funding from the government: They are financed directly from the government treasury i.e. Consolidated Fund of India and through an annual budget of the government. Any revenue earned by these undertakings belongs to the government and is paid into the government treasury.

2. Government accounting and auditing: These undertakings follow government accounting rules as framed by the Indian Audit and Accounts Department. Audit of these undertakings is also under the control of the government.

3. Service conditions: The employees of these enterprises are government servants and their service conditions are same which are applicable to any other government servant. These undertakings are headed by officers from Indian Administrative Services, Indian Revenue Service, Indian Audit and Accounts Service, etc. The terms and condition of their recruitment and service are the same as those of any other government employees.

4. Control of ministry: These undertakings are sub-divisions or part of the ministry under which they are expected to work. Hence, the concerned ministry exercises full and direct control over such undertakings.

5. Accountability to the ministry: These enterprises are established to assist the ministry in particular fields. Hence, these enterprises are fully accountable to the ministry concerned.

6. Government accounting: These undertakings are subject to government accounting and audit control.


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