The government on Friday appointed noted economist Arvind Virmani as the new chief economic advisor in finance ministry.

"The appointments committee of the Cabinet has approved the appointment of Arvind Virmani as chief economic advisor, department of economic affairs, ministry of finance," an official statement said in New Delhi.

Virmani is currently serving as principal advisor in the Planning Commission and will replace Ashok Kumar Lahiri who is joining Asian Development Bank [Get Quote] in Manila as executive director.

He would be on deputation on ad-hoc basis till June 30, 2009, the date of his superannuation, or until further orders, the statement said.

A recipient of Padma Bhushan, Virmani is PhD in economics from Harvard University. His thesis supervisor was Nobel Laureate Kenneth Arrow.

Earlier, he served as director and chief executive of economic think tank, Indian Council for Research on International Economic Relations.

He was also senior economic advisor in finance ministry and advisor (development policy) in the Planning Commission.

Virmani's many research and policy papers cover areas of macroeconomics and growth, external sector and balance of payments, fiscal policy and tax reforms, financial sector, agriculture, industry infrastructure, social sector and natural resources.