Budget 2008-09 is crucial in many respects. First it is the last budget for Team Chidambaram before going in for the Lok Sabha elections in 2009. Second, the fallout of the subprime crisis in the US and the fear of global recession have to be addressed here as well. Third, most players in this year?s budget team are first timers barring expenditure secretary Sanjiv Mishra.

The finance minister?s new team is expected to look at the events of the past year differently and come up with novel answers. The team comprises Duvvuri Subbarao, finance secretary and also in charge of disinvestments; PV Bhide, revenue secretary; Sanjiv Mishra, expenditure secretary; Arun Ramanathan, secretary, financial services; Arvind Virmani, chief economic advisor; and Shubhashis Gangopadhyaya, advisor to the FM, apart from his two ministers of state, S S Palanimanickam and Pawan Kumar Bansal.

Leading the budget team is Dr Duvvuri Subbarao, finance secretary who joined North Block in April 2007. A topper of the 1972 IAS batch (Andhra Pradesh cadre), Subbarao has wide experience on macro economic issues and public finance. And with the Fiscal Responsibility and Budget Management (FRBM) Act mandating the Centre to reduce fiscal deficit, his role in the Budget making is to meet the target.

Subbarao’s last assignment was as secretary to the Prime Minister’s Economic Advisory Council. One of the first IITians to join civil services, he has also worked as joint secretary in the Department of Economic Affairs. Subsequent to joining the IAS, he did his postgraduation in economics from Ohio State University and was a Humphrey Fellow at MIT during 1982-83. He has a PhD in economics from Andhra University. He also had a stint with the World Bank as the lead economist (1999-2004).

To complement Subbarao will be P V Bhide, who took over as the revenue secretary in May last year. An IAS officer of 1973 batch (Andhra Pradesh cadre), he was previously posted as secretary in the department of disinvestments and has also worked in the Department of Economic Affairs. He is also a former finance and energy secretary from the Andhra Pradesh government and has had a stint in the World Bank as a technical advisor during 1988-92.

The most recent to join this year?s budget team is economist Subhashis Gangopadhyay. Both have a crucial role to play in the Budget making process as the looming recession in the US may take a toll on India?s rising growth curve. Subhashish Gangopadhyay, a Young Turk in the Budget team, joined as adviser to the finance minister on January 15 this year. Parthasarathi Shome, his predecessor, in a surprising move has now joined as the chief economist of Her Majesty?s Revenue & Customs in the United Kingdom.

Before joining the ministry, Gangopadhyay was director of India Development Foundation, an independent research organisation. A PhD in economics from Cornell University, Gangopadhyay was a faculty member at the Indian Statistical Institute, Kolkata.

Dr Virmani, who was heading research and economic think tank ICRIER, was principal advisor in the Planning Commission before taking over as the chief economic advisor in July 2007. A recipient of Padma Bhushan, Virmani is a Harvard economist. He completed his thesis under Nobel laureate Kenneth Arrow. He has succeeded Ashok Lahiri who joined the Asian Development Bank.

To achieve a growth rate of about 9%, the finance minister has pointed out that reforms in the financial sector would be crucial. And that?s where secretary, department of financial services, Arun Ramanathan?s role will be crucial. In fact, most measures of the government including the ones in the banking and insurance sectors are still pending due to the stiff opposition from the UPA?s left allies. The Pension Fund Regulatory and Development Authority Bill is yet to see the light of the day.

Ramanathan, an IAS officer of the 1973 batch from Tamil Nadu, took over as secretary, department of financial services, Ministry of Finance, only in January after Vinod Rai assumed the office of the Comptroller and Auditor General of India. Earlier, Ramanathan was the secretary, department of chemicals and petrochemicals.

Expenditure secretary Sanjiv Mishra is the only familiar face in the North Block. He was earlier disinvestment secretary before taking up his present assignment in October 2006. An IAS officer of 1972 batch, Mishra was set to superannuate in December 2007 but he was given three months extension to see the Budget through.

The two key wings in the revenue department, which look after policies and collections of indirect and direct taxes, too have new faces heading them.

The Central Board of Direct Taxes (CBDT) has had two chairmen since the last Budget. Indira Bhargava, who retired in May last year, was succeeded by BM Singh. In October however the post was taken over by Ratneshwar Prasad, an IRS officer, who was previously member of CBDT and in charge of the key Budget division.

The Central Board of Excise and Customs (CBEC), which as the name suggests, is responsible for customs, excise and service tax also got a new chairman in May last year. SK Singhal, an IRS officer of 1970 batch, heads the board.

Though finance minister P Chidambaram may have a new Budget team this year, the minister is a veteran in Budget presentation as this year will be his seventh budget. He presented two budgets under the United Front government and the rest under the United Progressive Alliance government.

The countdown to the final show has already begun. And the finance minister has held a number of meetings with captains of industry, economists, agriculturalists and trade union leaders to discuss various issues before giving final touches to the budget.

Though the general perception is that the finance minister would play Santa with the general elections inching closer, the minister has maintained that there is no such thing as the election budget. It may be so but the key challenge remains to walk the tight rope as they sit down to do a balancing act. The new Budget team will have to ensure that it not only keeps the finance minister?s promise of 9% growth, but also pushes growth and reforms.