Finance Minister Nirmala Sitharaman is gearing up to present a historic ninth consecutive Union Budget, a record feat. This year, the core team assisting her in this massive exercise showcases a significant reshuffle, blending seasoned veterans with fresh leadership. Notably, the team is set to operate without a designated Finance Secretary, a first among equals, marking a distinct shift in the budget preparation process.
A Team in Transition: New Leadership at the Helm
The budget preparation machinery within the Finance Ministry has seen considerable changes since the last fiscal exercise. Only four members from the previous budget team remain in place. These are CBDT chairman Ravi Agrawal, Dipam secretary Arunish Chawla, financial services secretary M. Nagaraju, and chief economic adviser V. Anantha Nageswaran.
In contrast, the three key secretaries overseeing crucial departments assumed their roles only this summer. V. Vualnam took charge of the expenditure department, Arvind Shrivastava leads the revenue department, and Anuradha Thakur heads the economic affairs department. Ms. Thakur is expected to coordinate the overall budget exercise in the absence of a full-fledged Finance Secretary.
Further down the line, other critical positions have also seen recent appointments. Vivek Chaturvedi became the chairman of the Central Board of Indirect Taxes and Customs (CBIC) in December. Vyasan R., the joint secretary in charge of the vital budget division, also moved into his current assignment mere months ago.
Experience Amidst the New: Veterans Return to the Fold
Despite the influx of new faces, the team is not devoid of deep institutional knowledge. Revenue Secretary Arvind Shrivastava is a seasoned veteran of the budget process. He previously led the budget division for several years before moving to the Prime Minister's Office, where he continued to be part of high-level discussions on the annual financial statement.
Similarly, Joint Secretary Vyasan R. is no stranger to the intense budget-making drill, having been part of the team in earlier assignments. This blend ensures that while new perspectives are brought to the table, the continuity of procedural expertise is maintained.
Comparing with Past Tenures and New Responsibilities
Since Sitharaman took office at North Block in 2019, she has worked with several officers who had long tenures in the finance ministry. These included T.V. Somanathan as expenditure secretary, Ajay Seth as economic affairs secretary, and Tuhin Kanta Pandey, who served as the longest-serving Dipam secretary and was also the finance secretary during the last budget.
This year, the expenditure department, under V. Vualnam, will shoulder an additional critical responsibility. It will be involved in the review of the Finance Commission's recommendations. The budget is expected to announce the new devolution formula for states along with other key proposals stemming from this review, making the department's role even more pivotal.
While public enterprises secretary K. Moses Chelai is the senior-most secretary among the departments in Sitharaman's team, his department has minimal direct involvement in the budget-making process.
As the final touches are put on the budget documents, all eyes are on this reconstituted team. Their collaboration will be crucial in shaping a budget that addresses India's economic priorities while navigating a complex global landscape. The absence of a traditional Finance Secretary puts the onus of seamless coordination squarely on the collective shoulders of the new leadership trio and their experienced colleagues.
