Govt’s financial advisors going on a US study tour. All of them

OFFICERS’ 9-DAY SCHEDULE TO INCLUDE SESSIONS ON FISCAL POLICY, PUBLIC EXPENDITURE

Next week, the government of India could be without a single financial advisor. All of them, about 32 across various ministries and departments, are headed for a week-anda-half-long training to Duke University’s Sanford School of Public Policy in North Carolina, United States, and then at the Duke campus in Washington DC.

Business Standard has reviewed the itinerary of the programme, from August 13-21. A senior government official has confirmed that the programme will be attended by all serving financial advisors to the Government of India.

The sessions in Duke-Sanford will be on subjects such as fiscal policy and management, public expenditure, investment, managing capital spending, publicprivate partnerships, budgeting, outcome and performance-based budgeting, mergers and acquisitions, cash management and function of the treasury.

After a week at Duke-Sanford, the officials will visit Washington DC on August 20 and 21 and will attend sessions conducted by World Bank and International Monetary Fund officials. They will also visit the Government Accountability Office (GAO), the US’ equivalent of the Comptroller and Auditor General of India. The financial advisors of various departments are mostly drawn from the Indian Administrative Service, but are also drawn from the Indian Revenue Service, Indian Audit and Accounts Service, Indian Postal Service, Indian Defence Accounts Service, Indian Railways Accounts Service and Indian Post & Telecommunication Accounts & Finance Service.

According to information on the website of Finance Ministry’s expenditure department, there are 36 posts for financial advisors in the central government, with four of them vacant. The advisors are governed by the Government of India (Consultation with Financial Advisor) Rules, 1968.

A financial advisor is responsible for the work related to finance, budgeting and accounts of the department, to which she or he is appointed. The advisor has also to be consulted on funds being released to state-owned companies under the department concerned.

All proposals for the sanction of grants-in-aids, including scholarships, and loans have to be referred to the advisor before being cleared. Contracts, purchases by the departments, fixing prices of commodities which are directly traded by a department, are also decided in consultation with the advisor. Any serious contravention of financial rules, deviation or relaxation of financial norms and any case of abandonment or write-off also has to be investigated by the advisor.

Some of the departments, which have a financial advisor include telecom, railways, defence, space and atomic energy, commerce, information and broadcasting, law, petroleum, health, consumer affairs, railways, external affairs, labour, steel, rural development, power, civil aviation, power, finance and others.

A financial advisor is responsible for the work related to finance, budgeting and accounts of the department, to which she or he is appointed