The British Resident and Dewan, John Munro and Rani Lakshmi Bai, as part of their reform and modernization of Kerala's administration between 1811 and 1814, had framed some of the major departments of the Secretariat like Finance, Revenue, Police, etc.

In the course of legislative developments in 1865, the foundation stone was laid for the Secretariat building by Ayilyam Thirunal Majaraja.

This was primarily because of Kerala’s long history in keep state revenues as an independent department during monarchical days.

During Monarchical days in Kochi and Travancore Kingdoms, most of the land are owned by Royal governments, which has been leased to feudal lords, planters, industrialists, temple bodies and religious congregations for carrying out economic activities in return for fixed revenue.

The Finance Department controls the major functions like Stores & Purchase, Commercial Taxes, Agricultural Income Tax, Treasuries, Lotteries, Local Fund Audit, Financial Enterprises, State Insurance, Stamps & Stamp Duties etc.