New Delhi: After implementing the UPA government's disinvestment plans for the past six months, Sunil Mitra today took over as the Revenue Secretary, less than a month before the Budget presentation in Parliament.
"Mitra today assumed charge of the Revenue Secretary," an official in Revenue Department of the Finance Ministry said.
A crucial task of striking a fine balance between compressing fiscal deficit and promoting economic growth awaits Mitra at the North Block. His assuming office of the Revenue Secretary comes at a time when a debate raging on whether the government should roll back some of stimulus measures or not.
The Reserve Bank in its last quarterly policy review had advised the Finance Ministry to start rollback of some of stimulus measures. However, the industry has voiced its strong concern against any withdrawal till the recovery is on a strong footing.
The government had cut excise duty by 6 percent, service tax by 2 percent in phases from December 2008 and stepped up the Plan expenditure to provide stimulus to the then slowing down economy.
However, this has hit the exchequer hard with fiscal deficit projected to widen to 6.8 per cent of the GDP this fiscal, whereas it should have come down to 3 per cent by the last fiscal, as per the Fiscal Responsibility and Budget Management Act.
In place of Sunil Mitra, Sumit Bose has been appointed as the new Disinvestment Secretary who is yet to take the charge.
The Government is likely to present the Budget for 2010-11 on February 26.
Mitra, a 1975 batch IAS officer, from West Bengal, was the Disinvestment Secretary in July, 2009. He replaced Rahul Khullar, who moved from the Disinvestment Department to the Commerce Ministry.
In his stint as Disinvestment Secretary, Mitra implemented the Government's disinvestment plans in respect of listing of energy PSUs -- NHPC and Oil India.
Four more PSUs -- NTPC, REC, NMDC and SJVNL--will be disinvested this fiscal.
The government has also cleared disinvestment in EIL, which is likely to happen in the next fiscal.
The Government came out with clear decision that all profitable listed PSUs should have at least 10 per cent public holding and all unlisted profitable PSUs should be listed.
This makes around 60 PSUs as eligible for disinvestment, Mitra had said earlier. He, however, had clarified that it does not mean that all of them would be disinvested.
Before Disinvestment Secretary, Mitra served as West Bengal Power Secretary. He has also served as Secretary, Public Enterprises and Industrial Reconstruction in West Bengal.
PTI
First Published: Sunday, January 31, 2010, 19:51