Arvind Subramanian, Chief Economic Adviser (CEA) to Government of India, got an extension of one year on Friday. The development was confirmed by the Finance Minister Arun Jaitley. Subramanian’s three-year tenure was about to end on 16 October this year. As per PTI report, Subramanian is a senior fellow at the Peterson Institute for International Economics and was appointed India’s Chief Economic Adviser (CEA) in October 2014. The CEA is usually the main go-to person for advice for the finance minister on macro-economic matters, and primary responsibilities, among others, include authoring the mid-year analysis and the Economic Survey. Just like the post of RBI governor, the post of the CEA is also taken up for three years but the government can extend the tenure by one year if it wants to. It’s one of the crucial government institutions that are important for monitoring performances of various key sectors.
Apart from holding the position, Subramanian also authored the highly acclaimed “Report on the Revenue Neutral Rate and Structure of Rates for the Goods and Services Tax (GST)” in December 2015. It laid down the broad contours for implementing GST in India from July 1, 2017.
FM @arunjaitley : CEA Dr. Arvind Subramanian will continue for one more year after completion of his 3 year tenure on 16th October, 2017.
— Ministry of Finance (@FinMinIndia) September 23, 2017
Earlier, on Friday, amid slowing growth and rising inflation, Subramanian met PM Narendra Modi to brief him on the state of the economy and talked about issues like recent increases in domestic fuel prices. As per FE Bureau report, petrol prices are hovering around their highest levels in three years, courtesy of the current dynamic pricing system introduced since June under which fuel prices are revised on a daily basis.
Retail inflation shot up almost one percentage point sequentially to 3.36% in August, while WPI inflation hit a four-month high of 3.24%, thanks to a pick-up in price pressure in food and fuel, GST and revised house rent allowances to central government staff.