FM's advisor resigns ahead of budget

Written by Agencies | New Delhi, December 28: | Updated: Dec 28 2007, 19:53pm hrs
Finance Minister P Chidambaram has some new faces in the team preparing next year's budget with even his advisor Parthasarathi Shome resigning the fourth top-level change in the ministry in past few months.

The resignation of Shome, who played a key role in introduction of value-added tax, fringe benefit tax and banking cash transaction tax, has been accepted. He will relinquish his post on January 11, official sources said.

Shome's joined as advisor to Chidamabaram in October 2004 for three years. His tenure was recently extended till October 2009 but the contract has been terminated from January 11, according to an official note. The reason for his resignation could not be immediately known. Shome could not be contacted.

This is the fourth change in the budget-making team. P V Bhide took over as Revenue Secretary from K M Chandrasekhar, D Subbarao replaced Adarsh Kishore as Finance Secretary, and Arvind Virmani became chief economic advisor in place of Ashok Lahiri. Expenditure Secretary Sanjiv Misra's tenure, however, has been extended by three months till March 31.

Shome was the representative of Union Finance Ministry in the Empowered Committee of State Finance Ministers on value-added tax and brought his experience in introduction of VAT in Brazil. He is the first Indian to be awarded Brazil's highest civilian hour for a non-Brazilian -- 'Commander of the Order of the Southern Cross'.

He was the co-convener of a working group on Goods and Services Tax that is to be introduced from March 1, 2010. He was also in the committee working out the rates for GST.

Shome also worked with International Monetary Fund, but his main work has been in more than 30 Latin American and African countries. He also served as director of National Institute of Public Finance and Policy.