New Delhi (09.07.2025): As the Monsoon Session of Parliament commences on July 21, 2025, the Finance Ministry faces uncertainty with the retirement of Finance Secretary designate Ajay Seth on June 30, 2025. Nine days have passed since then, and the government is yet to announce a replacement. The new Finance Secretary plays a crucial role in shaping India's economic policies and driving financial reforms, especially with the upcoming Monsoon Session of Parliament.
Convention for appointing Finance Secretary:
According to the convention, the senior-most secretary among the six departments under the Ministry of Finance is typically designated as the Union Finance Secretary. The six departments are; Revenue, Economic Affairs, Expenditure, Investment & Public Asset Management, Financial Services and Public Enterprise.
The senior most?
The current senior-most secretary is DPE Secretary K Moses Chalai, a 1990-batch IAS officer from the Manipur cadre, belonging to a tribal community.
Speculation surrounding the new appointment:
Given the context of the "Halwa Ceremony" controversy, where the opposition has raised concerns about the representation of weaker sections in the Union Budget, the government might prioritize a politically correct choice. Some speculate that this could influence the decision, potentially favouring K Moses Chalai due to his seniority and the background.
Why this delay:
Prime Minister Narendra Modi began a week-long, five-nation tour on July 2, marking his longest foreign visit in over a decade which defines the delay well.
In the past, Tuhin Kanta Pandey was announced as Finance Secretary eight days after Dr. T V Somanathan's move to Cabinet Secretary. Similarly, the government might soon announce the name of a new Finance Secretary-designate.
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