ET takes a look at the team that will balance these three objectives as it drafts the FY24 budget:
TV SOMANATHAN
FINANCE AND EXPENDITURE SECRETARY
A 1987 batch IAS officer of the Tamil Nadu cadre and a budget veteran, Somanathan as finance secretary is spearheading budget preparation as he balances the key goal of fuelling growth through capital expenditure push while not losing sight of fiscal consolidation. Mounting global uncertainties complicate Somanathan’s task as he will have to ensure that the budget retains some dry powder for any contingency. Expenditure rationalisation and capital expenditure push are likely to remain the mainstay in the coming financial year as well. The new spending management system instituted under his watch has allowed more efficient use of the Centre’s resources, reducing the fund float in the system. The benefits of that will be visible fully in FY24.
SANJAY MALHOTRA
REVENUE SECRETARY
A Rajasthan cadre IAS officer of the 1990 batch, Malhotra joined the Department of Revenue in October last year. He has a tough task — a clamour for tax relief amid high inflation against the demand for revenues to fund additional spending ahead of the elections. Malhotra, an IIT Kanpur alumnus, is expected to focus on tax rationalisation and direct tax regime simplification. The upcoming budget is also expected to continue with the push to ease compliances and offer relief to all categories of taxpayers. It will also be watched for capital gains tax regime simplification.
V ANANTHA NAGESWARAN
CHIEF ECONOMIC ADVISER
V Anantha Nageswaran, a former member of Prime Minister’s Economic Advisory Council (PMEAC), was appointed chief economic adviser just a few days ahead of the FY23 budget. Nageswaran, an academic and former executive with Credit Suisse Group AG and Julius Baer Group, will be watched for his assessment of the economy in the Economic Survey that precedes the budget and policy prescriptions. As the country aspires to reignite its manufacturing and become part of global value chains, Nageswaran’s budget footprint will be keenly watched for measures to kickstart private investment while maintaining macroeconomic balance.
TUHIN KANTA PANDEY,
SECRETARY, DEPARTMENT OF INVESTMENT & PUBLIC ASSET MANAGEMENT
A 1987 Odisha cadre IAS officer, Pandey delivered on the privatisation of Air India and the mega listing of Life Insurance Corporation of India (LIC). The upcoming year will be keenly watched for the strategic sale of IDBI Bank but the bigger privatisation of public sector banks may have taken a backseat for now with general elections next year.
AJAY SETH
SECRETARY, DEPARTMENT OF ECONOMIC AFFAIRS
Seth, a 1987 Karnataka cadre IAS officer, was appointed economic affairs secretary in April 2021. With India’s G20 presidency, Seth’s role in the budget will be keenly watched for growth impulses to support the economy while maintaining macroeconomic stability.
VIVEK JOSHI
SECRETARY, DEPARTMENT OF FINANCIAL SERVICES
Joshi, a 1989 batch IAS officer of the Haryana cadre, is expected to continue with the government’s reform agenda for state-run financial institutions. Public sector banks have made a strong recovery, with the 12 state-run lenders reporting a 50% increase in combined net profit to `25,685 crore in the September quarter. The upcoming budget may also herald the Banking Amendment Act, paving the way for further privatisation. Financial inclusion through digitisation, a key focus area for the government, may also get a boost in the upcoming budget.
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