The government is clearing the way for commerce secretary Rahul Khullar to take over from Ashok Chawla as finance secretary in February, a month before the union budget for 2011-2012 is presented.

Doing away with a long-held practice of retaining a finance secretary through the complete budget cycle (drafting to presentation), the government is rather focussed on getting Khullar geared for the job. Sources say that Chawla has been asked to involve Khullar in drafting the budget to ensure contuinity in the final document taht is presented to Parliament on February 28.

57-year old Khullar, according to sources, was the prime minister's favourite for the job, having worked with later as his private secretary in the 1990s. The prime minister is known to have consulted finance  minister Pranab Mukherjee on moving him to the finance ministry in the midst of budget preparations.

A Delhite and with a doctorate in economics, Khullar is known for his acute understanding of economic issues. However, in the light of his recent health problems, the PMO had arranged for him to work in tandem with Chawla to take on budget preparations.

Chawla, meanwhile, is tipped for being accomodated at a senior post elsewhere post retirement.