Government Departments Rely Heavily on External Consultants: Expenditure Reaches Rs 302 Crore

Introduction:
• The Indian Express, through a Right To Information (RTI) request, has revealed that 44 Government of India departments employ a total of 1,499 external consultants, including those from prominent firms like Ernst & Young, PwC, Deloitte, and KPMG. The annual expenditure on these consultants amounts to Rs 302 crore. Additionally, the data highlights the engagement of 1,037 Young Professionals, 539 independent consultants, 354 domain experts, 1,481 retired government officers, and 20,376 low-paid staff across 76 departments.
Consultants Distribution Across Departments:
• The top six departments with the highest number of external consultants include Health and Family Welfare (203), Rural Development (166), Agriculture and Farmers Welfare (149), Ministry of Housing and Urban Administration (147), Women and Child Development (112), and Road Transport and Highway (99). These departments collectively represent 58% of the total consultants, accounting for 43% of the Rs 302 crore expenditure.
Young Professionals and Other Contract Hires:
• NITI Aayog leads in hiring Young Professionals (95), followed by the Commerce Department (87) and the Department for Promotion of Industry and Internal Trade (78). Agriculture and Farmers Welfare, NITI Aayog, and Road Transport and Highways are the top three in hiring independent consultants and domain experts.
Remuneration Insights:
• While information on remuneration is available for consultants from external agencies, details for other positions remain unclear. Young Professionals receive approximately Rs 50,000 to Rs 75,000, while independent consultants and domain experts may earn between Rs 1 lakh to Rs 4 lakh monthly. Specific instances include the Ministry of Labour paying Rs 7.5 lakh monthly jointly to two consultants, and the Department of Commerce offering between Rs 1.45 lakh and Rs 3.30 lakh monthly.
Conclusion:
• As the government seeks information on contract hires for budget allocation discussions, this data sheds light on the significant reliance on external consultants. The distribution across departments and the varied remuneration levels highlight the complexity and diversity in the government’s approach to hiring for diverse roles. The disclosure underscores the importance of transparency in understanding public expenditure and the role of external expertise in governmental functions.