Former finance secretary Subhash Chandra Garg has said finance minister Nirmala Sitharaman asked for and insisted on his transfer from the ministry of finance in June 2019, within a month of her taking over as minister.
"Serious difference also developed on some key issues like economic capital framework of RBI, a package for dealing with problems of non-banks, resolution of non-banks, partial credit guarantee scheme, capitalisation of non-banks like IIFCL and other financial entities and the like," Garg wrote in his blog explaining the reasons for his voluntary retirement.
He said that Sitharaman has a very different personality, knowledge endowment, skill-set, and approach for economic policy issues and that it became quite apparent very early, that working with her was going to be quite difficult and it might not be conducive to undertaking necessary reforms for the attainment of the objective of building a $10 trillion economy of India.
He said Sitharaman came with some pre-conceived notions about him and did not seem comfortable working with him.
He wrote that he did not want to work in the government outside the ministry of finance, as that was the place where an officer got the widest possible view of the Indian economy.
"The budget was due to be presented on 5th July, within 35 days of her taking over as Finance Minister. Despite quite a few episodes of acrimony which had made the working environment unpleasant, I decided that I would do everything possible to see that budget was not harmed and it was delivered on time," he wrote. However, he had made up his mind in the month of June 2019, much before the Budget was presented, that he would take voluntary retirement from the service.
"Dr. P. K. Mishra, then Additional Principal Secretary, who oversaw appointments and transfers in the PMO, asked me to come over for a chat on 18th July... Both of us agreed that the best course would be for me to make way for the new FM to ‘function smoothly’," he wrote.
(Edited by : Jomy)
First Published: IST