The critical post of Union Finance Secretary (FS) has remained vacant for over 100 days since Ajay Seth (IAS: 1987: KN) stepped down on June 30, 2025, marking an unprecedented delay in filling one of India’s most pivotal administrative roles. This prolonged vacancy has ignited intense speculation across bureaucratic and political circles in New Delhi, with theories ranging from a deliberate move to dismantle colonial-era conventions to an administrative oversight in succession planning.
The Finance Secretary, a non-statutory position but regarded as the "first among equals" within the Ministry of Finance, serves as the principal coordinator across its six departments—Revenue, Expenditure, Economic Affairs, Financial Services, Investment & Public Asset Management, and Public Enterprise. The FS is also the chief administrative advisor to the Finance Minister and the only Secretary authorized to sign the one-rupee note, underscoring the role’s significance.
Sources close to the Ministry suggest the delay stems from a lack of foresight in establishing a clear succession plan, creating a bureaucratic "Catch-22." The appointment must be made from the six eligible Union Secretaries, but the absence of a designated FS has placed an additional burden on former Finance Secretary and current Cabinet Secretary, Dr. T. V. Somanathan. As the Union Budget cycle approaches, Dr. Somanathan is tasked with coordinating the Ministry’s departments and laying the groundwork for budget proposals, a responsibility that highlights the urgency of filling the vacancy.
The extended gap has fueled speculation that the Modi government may be contemplating a break from the long-standing convention of appointing the senior-most Secretary within the Finance Ministry as FS. Such a move would align with the administration’s broader agenda of dismantling colonial-era practices, as seen in past decisions like merging the Railway Budget with the Union Budget and shifting the Budget presentation from from the fag end of February to the start of the month. Discontinuing the FS convention would mark a significant administrative reform, though its practical implications remain a subject of debate.
Despite the speculation, sources emphasize that the delay is more a result of administrative complexities than a deliberate policy shift. They indicate that an appointment is expected in the coming weeks to stabilize policy leadership ahead of critical financial exercises, particularly the preparation of the upcoming Union Budget.
As New Delhi awaits clarity, the prolonged vacancy underscores the delicate balance between administrative tradition and the government’s push for modernization, with the resolution likely to shape the Ministry of Finance’s trajectory in the months ahead. |
