In the course of legislative developments in 1865, the foundation stone was laid for the Secretariat building by His Highness Ayilyam Thirunal Maharaja. The Secretariat began to function from 23rd August 1869. Earlier, the Secretariat was known as Huzur Cutchery, Public Office or Puthen Kacheri.
As part of the modernization of administration, in 1871, Col. Munro and Her Highness Rani Lakshmi Bai framed some of the major departments of the Secretariat like Finance, Revenue, Police etc. (The Secretariat came to be known as 'Government Secretariat' from 25th August 1949 by virtue of Circular no. M3-5412/49/CS). Since its formation in 1871, Finance Department plays a major role in governance.
Now, major responsibilities of Finance Department are derived from Articles 202 to 206 of the Constitution of India.