Weeks ahead of its first full budget, the government on Monday completed the exercise of revamping the planning commission by appointing free market economist Arvind Panagariya as vice-chairman of newly-formed Niti Aayog.

Panagariya is currently professor of economics at Colombia University.

As the new head of the Niti Aayog, he moves to the centre of the team that will formulate the next Union budget to be presented in the last week of February.

Apart from the vice-chairman, the government also appointed economist Bibek Debroy and former bureaucrat VK Saraswat as full-time members to the think-tank that was set up on January 1, a statement said.

Saraswat is the former head of the department of defence research.

A strong critic of the Congress-led United Progress Alliance government, Panagariya’s writings clearly show he is one of the key minds behind the reforms being initiated or talked about by the Modi government.

He has been an advocate of a strong prime minister’s office, speeding up of environment clearances and complete elimination of subsidies on diesel and petrol, all of which has been achieved by the NDA government.

The US-based economist has called for completing the process of implementation of goods and services tax (GST) by 2016 and government has committed itself to the rollout of the tax by April 2016.

Panagariya’s road map for improving the health of state-owned banks is also being followed closely with government agreeing to dilute its equity by allowing them to raise fresh equity capital from the market and explore merger of weaker banks with smaller banks.

The first full budget of Narendra Modi-led government will be keenly awaited for the direction it provides to the economy. By appointing a strong advocate of free markets as an instrument of fighting poverty, the government has sent out another signal of the things to come.

The NDA government has even set the ball rolling on the politically sensitive issue of labour reforms and as a first step, has curbed the role of labour inspectors.

Apart from vice-chairman and two full-time members, the government also four ministers including those heading finance, railways and agriculture as ex-officio members. Three ministers have been made special invitees to the commission.