Why Tuhin Kanta Pandey might have been appointed Revenue Minister

Just three weeks before the Union Budget 2025-26 was to be presented, the government on January 8 chose to reconstitute the top team of officials in the Finance Ministry and appointed Finance Minister Tuhin Kanta Pandey as Revenue Minister.

Pandey, a senior functionary in the Finance Ministry, was so far in charge of the Department of Public Investment and Asset Management (DIPAM) as well as the Department of Public Enterprises. He takes over as Revenue Minister from Arunesh Chawla, who was appointed as Revenue Minister on December 25 following Sanjay Malhotra’s move to the post of Reserve Bank of India Governor. Chawla has now been appointed as secretary of DIPAM.

While the late-night appointment was a surprise, policy watchers noted that this was done in light of the impending Budget on February 1. Pandey was appointed Secretary of DIPAM in 2019 and has been working in the Ministry of Finance for a long time and is well versed with the budget preparation process.

He was also appointed Minister of Finance in September 2024 and in this position coordinates work with the Departments of Economic Affairs, Revenue, Financial Services and Expenditure and DIPAM. Sources say it was also felt that given the complexity of the tax-related proposals, an official who was familiar with them might be better placed as revenue minister ahead of the Budget.

The Revenue Department occupies a crucial position in the Ministry since it works on direct and indirect tax policy measures and is responsible for collecting tax revenues for the Centre.

The appointment means that Pandey, who was shuttling between his office at DIPAM in Delhi’s CGO complex and North Block, will now move to North Block full-time.

Officials also point out that juggling the role of revenue minister and culture minister would have been an arduous task for Chawla.

As per the official order, Chawla has been appointed as Secretary DIPAM and will also assume additional duties as Secretary DPE and Secretary Ministry of Culture till appointment of regular post or till further orders.