Budget 2024: Finance Secretary TV Somanathan Leads Capex Drive for a Healthier Fiscal Position
Finance Secretary TV Somanathan: Architect of Robust Capital Expenditure and Fiscal Reforms
As the nation eagerly anticipates the upcoming interim Budget to be presented on February 1, Finance Secretary TV Somanathan stands at the forefront, wielding significant influence in shaping the fiscal trajectory of the country. Appointed to the critical role in December 2019, Somanathan has been a driving force in steering the Department of Expenditure, Ministry of Finance, towards record levels of capital expenditure.
A seasoned bureaucrat of the 1987-batch Indian Administrative Service (IAS) from the Tamil Nadu Cadre, Somanathan’s journey to becoming Finance Secretary reflects his stellar career. In April 2021, he ascended to the position of Finance Secretary, a distinction granted to the most senior officer among all secretaries in the ministry.
Somanathan’s career spans various key roles, showcasing his versatility and expertise. His stint as a joint secretary in the Ministry of Corporate Affairs (MoCA) from 2015 to 2017 was followed by a significant period in the Prime Minister’s Office (PMO), where he played a pivotal role in implementing economic policies. Currently, he also chairs the committee entrusted with the review of the pension system for government employees.
Armed with a doctorate in Economics and holding qualifications as a chartered accountant (CA), cost accountant, and company secretary, Somanathan brings a multidimensional skill set to the table. His academic prowess is evident in his extensive contributions to the field, with over 80 published papers and articles on economics, finance, and public policy. Furthermore, he is the author of two books and has contributed chapters to several others. Somanathan’s expertise extends beyond national boundaries, as he served as Director at the World Bank, Washington D.C., during his deputation from the IAS.
Somanathan’s leadership of the Department of Expenditure has been marked by a strategic push for record capital expenditure, aligning with the government’s objective to stimulate growth and employment. Recognized for his popularity among colleagues, he played a pivotal role in architecting the 2021-22 Budget, which notably discontinued the practice of extra-budgetary borrowing from that fiscal year. This bold move aimed at enhancing transparency and cleansing the central government’s balance sheets.
During the challenging period when the country faced a revenue crunch due to the pandemic in 2020 and 2021, Somanathan demonstrated his financial acumen. He spearheaded policies to enforce expenditure curbs across various ministries and departments, showcasing his commitment to fiscal prudence. Additionally, he played a crucial role in implementing flagship schemes such as ‘PM Gareeb Kalyan’ and ‘Aatmanirbhar Bharat,’ which were introduced during the initial wave of the COVID-19 pandemic.
As Finance Secretary, Somanathan’s influence is poised to significantly impact the interim Budget, where he will continue to leverage his expertise to navigate the economic landscape. His commitment to fiscal responsibility, capital expenditure, and economic reforms positions him as a key player in shaping India’s financial future.