Ahead of Budget 2025, revenue secretary Sanjay Malhotra's transfer to RBI leaves key position vacant

The unexpected transfer of Revenue Secretary Sanjay Malhotra from the Ministry of Finance in New Delhi to the Reserve Bank of India in Mumbai has left a key position vacant, just seven weeks before Finance Minister Nirmala Sitharaman is set to present the Union Budget. This development poses a unique challenge as the government has yet to announce Malhotra's successor for a role that demands extensive expertise in both direct and indirect taxation.

Historically, the government has refrained from extending terms of finance officials even in the crucial lead-up to the budget. The vacancy now highlights the delicate balance required to ensure seamless coordination within the finance ministry, which comprises six departments—Revenue, Expenditure, Economic Affairs, Financial Services, DIPAM, and Public Enterprises. Of these, Revenue, Expenditure, and Economic Affairs play critical roles in shaping the Union Budget.

This year's scenario is further complicated by recent changes in leadership. DIPAM Secretary Tuhin Kanta Pandey, now serving as the Finance Secretary due to his seniority, is juggling multiple responsibilities, including overseeing the Department of Public Enterprises and the Department of Personnel. For Expenditure Secretary Manoj Govil and Financial Services Secretary M. Nagaraju, the upcoming budget will be their first experience in such a high-stakes exercise.


The appointment of a new Revenue Secretary will require immediate acclimatization to the rigorous demands of budget preparation. Key tasks will include integrating proposals from various sectors, aligning with government priorities, and ensuring smooth functioning of the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC).

As the finance ministry navigates these transitions, the onus remains on ensuring that the Union Budget reflects a cohesive economic framework, shaped in coordination with the Chief Economic Adviser and other core departments. The government’s decision on Malhotra's successor will be pivotal in managing these complexities and steering the fiscal roadmap.

with TOI inputs