The decision was taken during a Cabinet meeting chaired by Chief Minister V. D. Satheesan. Announcing the reform at a press conference in Thiruvananthapuram, the Chief Minister said the initiative was inspired by a system introduced by the Central Government in 1974 and was designed to ensure faster administrative decisions while maintaining strict financial oversight.
The Chief Minister stated that a large number of files are routinely referred to the Finance Department, including many that do not require such scrutiny. He noted that departments often forward files without adequately examining financial rules and procedures, resulting in delays in government decision-making, slower project implementation, and administrative obstacles.
Under the new framework, each government department will be assigned an integrated financial advisor. These advisors will be officers from the Finance Department holding a rank of at least Joint Secretary. They will examine proposals and provide financial guidance to departmental secretaries before files are processed, ensuring that financial scrutiny is available within the departments themselves.
According to the Chief Minister, the reform will effectively decentralise certain powers currently exercised by the Finance Department and significantly improve the speed of administrative processes across the government. Finance Department officials will serve in the advisory roles, and the initiative will not impose any additional financial burden on the state government.
Describing the move as a “revolutionary administrative reform,” the Chief Minister expressed confidence that it would substantially enhance governance and improve the execution of government projects.
He emphasised that financial scrutiny would remain intact under the new mechanism while delays caused by repeated referrals to the Finance Department would be minimised. The government expects the reform to deliver major improvements in administrative efficiency, strengthen governance, and ensure faster implementation of development initiatives across Kerala.
The decision marks one of the most significant governance reforms undertaken by the state administration in recent years, reflecting the government's focus on streamlining procedures, reducing delays, and improving the effectiveness of public administration and project delivery.
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