Tarun Bajaj is no stranger to finance ministry, but this stint will be his toughest

In his third stint in the finance ministry, Bajaj’s positive attitude, hands-on approach and openness to feedback will help, say IAS colleagues.

Tarun Bajaj, secretary, Department of Economic Affairs | Illustration: ThePrint Team

New Delhi: For Tarun Bajaj, his third stint in the Ministry of Finance will perhaps be the most eventful and challenging.

Bajaj, a 1988-batch Haryana cadre IAS officer, is set to take over the ministry’s Department of Economic Affairs (DEA) at a time when India is expected to witness a contraction in the economy after decades of positive growth on account of the Covid-19 pandemic.

His appointment as DEA secretary was cleared Sunday by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi, amid a slew of other top-level bureaucratic changes.

Well-versed with the finance ministry

Tarun Bajaj is not new to the workings of the finance ministry, and is expected to fit right into his new role, helming one of the most important policy-making divisions.

The IAS officer first worked as a director and joint secretary in the Department of Financial Services overseeing the insurance division between 2006 and 2011. He then worked as a joint secretary in the DEA between 2014 and 2015 overseeing multilateral institutions.

Bajaj, who had a five-year stint between 2015 and 2020 in the Prime Minister’s Office (PMO), was also involved in overseeing finance related matters before his current elevation.

What the new role entails

Officials who have worked with him say his understanding of the financial sector and the economy as a whole will serve him well.

DEA oversees important divisions like financial markets, infrastructure policy, currency and coins, budget division, investment and public debt management and international relations.

As DEA secretary, Bajaj will vet all important proposals to revive the economy. In his new role, he will need to work closely with the Reserve Bank of India and capital markets regulator Securities Exchange Board of India (SEBI) to ensure quick steps are taken in the interest of financial stability.

The DEA will also be at the forefront of talks with states to ensure they have adequate funding to battle Covid-19. The budget division of the department will have to work closely with the expenditure section to ensure sufficient cash in the government’s books at a time when expenses are increasing but revenues are expected to contract.

Bajaj will have to work closely with another of his former colleagues from the PMO, Expenditure Secretary T.V. Somanathan. The latter’s two-year stint in the PMO between 2015 and 2017 coincided with Bajaj’s tenure there.

Bajaj is also not new to handling difficult situations or regulatory spats. He was instrumental in bringing to an end the prolonged fight between the insurance sector regulator, Insurance Regulatory and Development Authority of India and SEBI over unit-linked insurance plans popularly known as ULIPS.

‘Positive attitude, hands-on approach’

Speaking about Tarun Bajaj’s work approach, an IAS colleague who didn’t wish to be named said, “He has an extremely positive attitude and is not cynical at all. He is open to meeting industry representatives and investors and it is a trait that will serve him well.”

Bajaj is known for his hands-on and practical ways, and commands the respect of his juniors. “He treats his team well and commands their loyalties,” said another official, who was a part of the DEA during Bajaj’s tenure.

He is also known to be a mentor to his younger colleagues who say he likes to nurture and grow talent.