The powers and functions of the cabinet is as follows: 

1. Formulation of Policy: The primary responsibility of Cabinet is formulating the policy of the government. The decisions arrived at the Cabinet reflects the national and international outlook of the government. Before the start of the parliament session, the cabinet makes a list of bills to be placed before the house for consideration and approval. No minister can place any bill in the parliament without the approval of the cabinet.

The bills so placed before the parliament for approval must be strongly defended by the – cabinet. The members of parliament can comment, criticize, and seek clarifications, from the government on any bill. Thus, from shaping the policy to defending it, cabinet plays a key role.

2. Control over the Executive: All the ministers who are a part of the government belong to the executive. Each minister having assumed responsibility of a ministry is wholly responsible for any happening in that particular ministry. Hence all ministers must strive hard to implement the cabinet decisions. If any minister violates the cabinet decisions he may be fired for violating the party unity. The cabinet apart from the ministers also directs and supervises the activities of the civil service.

3. Control over the Finance: The cabinet is responsible to the income and expenditure incurred by the state, though the responsibility of the preparing the annual income expenditure statement the budget lies with the Finance minister. In order to ensure secrecy, the cabinet does not discuss the budget proposal.

Generally, the Prime minister also plays an important part in budget making, so the budget proposal are discussed between the Prime minister and the finance minister. The content of the budget are not made known to cabinet till the Finance minister’s budget speech. Once the budget is placed before the parliament, the cabinet can discuss and seek changes if necessary. Though the cabinet has the authority to reject the budget in its entirety, it is hardly done. Because it amounts to an insult to the government.

4. Co-ordination: To co-ordinate the activities of different ministries or departments and guide them is the responsibility of the cabinet. Generally, working of one department will have its effect on the other. For example if two ministries work out an ambitious project calling for huge investment, the feasibility of its has to be decided by the finance ministry which holds the purse. Under these circumstances the cabinet has to strike a balance between the two and release money on priority basis. To co-ordinate governmental activities there are Secretarial Committees at the ministerial level headed by the Cabinet Secretary. Under his chairmanship these committees suggest means of coordination.

5. Control over appointments: Generally, appointments do not come before the cabinet. But all major appointments such as the Governor, the Chiefs of Staff (army, navy, air force), Chief Election Commissioner, etc., are brought to notice of the cabinet before made public. The consent of the cabinet to these appointments is only a formality.