Next EC head to steer GST to be elected on July 22

Post fell vacant last month after Bihar's deputy CM resigned following a split in BJP-JD (U) alliance

Empowered Committee (EC) of State Finance Ministers will select at its next Chairman at a meeting on July 22, helping in taking forward talks with the Centre on Goods & Services Tax (GST).

The post fell vacant last month after Bihar’s Deputy Chief Minister resigned following a split in BJP-JD (U) alliance in the state. The EC will now find his successor in the next meeting.  

“They will elect one when we meet on the 22nd. It is for them to elect a candidate from amongst themselves,” Finance Minister P Chidambaram told reporters when asked whether the Centre had invited any state finance minister to head EC.

While Modi was a clear choice after Asim Dasgupta resigned as EC chairman in 2011 following his defeat in West Bengal Assembly polls, this time it may not be easy to select a chairman.

Both the EC and the Centre prefer a candidate who is unbiased, has some technical understanding of the issues, comes from a large state, and is acceptable to most of the states. The chairman would have a huge responsibility on his shoulders to build a consensus between Centre and the states.

Kiran Chaudhary from Haryana and A K Walia from Delhi could be two contenders, but conventionally the post has always gone to a non-Congress party. West Bengal finance minister Amit Mitra has a good understanding of the subject, “mood swings” of his Chief Minister Mamata Banerjee might prevent the Centre from supporting him. Gujarat finance minister Saurabh Patel could be another apt candidate for the post, but his opposition to GST comes in the way.

The Centre may propose a name, but the decision to select the next chairman now rests with the general body of the committee, which comprises state finance ministers, a member secretary, and one additional secretary from the Union finance ministry. The post is likely to be filled up through a consensus among the members of the general body.

The rules of the committee mention about the chairman, but there is no mention of the “election” of the chairman. The general body may have to define the rules in case there is an election between two or more candidates.

Technically the EC chairman is appointed by the EC members. But after Dasgupta’s exit, then finance minister Pranab Mukherjee, now President, invited Modi to head the EC. It was believed that Mukherjee played a trump card by proposing Modi’s name for the post, as a neutral and experienced person like him could have helped convince BJP-ruled states to move ahead fast on GST.