The Standing Committee on External Affairs, in its latest report, has said the Ministry of External Affairs (MEA) should make proper coordination with the countries where India is funding projects and get requisite clearances to ensure timely execution and completion of projects.
The Parliamentary panel has reiterated that MEA should strengthen accounting management within the finance division and the overall budgetary management to include financial reporting and internal control, in order to ensure better management of expenditure and utilisation of allocated resources.
The committee had earlier recommended adoption of sound financial management practices in terms of the projects at various stages.
| INDIAN ASSISTANCE TO OTHER COUNTRIES Aid & loan to countries (proposed) | ||
| 2010-11 (RE) | 2011-12 (BE) | |
| Bhutan | 1,723.00 | 1,690.00 |
| Afghanistan | 310.00 | 290.00 |
| Nepal | 150.00 | 150.00 |
| African countries | 150.00 | 150.00 |
| Mongolia | 0.00 | 2.00 |
| Sri Lanka | 90.00 | 290.00 |
| Myanmar | 90.00 | 190.00 |
| Eurasian countries | 30.00 | 30.00 |
| Bangladesh | 3.00 | 3.00 |
| Maldives | 11.00 | 10.00 |
| Latin American countries | 4.00 | 4.00 |
| Others | 356.35 | 241.00 |
| Total | 2,917.35 | 3,050.00 |
| (Figures in Rs crore) Source: Standing Committee on External Affairs’ Report | ||
It has noted that despite the ministry’s efforts to reduce the tendency to surrender the allocated resources at the end of the year, there was still a vast gap between the proposals made and the funds granted by the finance ministry.
Budgetary allocation of MEA for 2011-12 is pegged at Rs 7,106 crore — 65 per cent lower than the proposed Rs 11,000 crore by the ministry.
“While formulating the budgetary proposals, the ministry should ensure that proposals are formulated in accordance with actual needs,” the committee has said.
A large chunk of the ministry’s budget is invested into technical assistance programmes in neighbouring countries and other developing nations. The principal beneficiaries in 2010-11 and 2011-12 includes Bhutan, Afghanistan, Nepal and the African countries.
Besides providing aid and loan to developing countries for technical cooperation, the ministry is also engaged in carrying out mega projects in various countries, including Afghanistan and Myanmar.
The committee has noted that these projects were appraised by the expenditure finance committee and approval of the competent authority was obtained thereafter.
It has stressed that due to the long implementation schedule and external factors operating in the countries where the projects were being implemented, there had been instances of excessive delays in starting and completing the projects.
The ministry, on its part, has provided detailed report of the projects in Bhutan, Nepal, Afghanistan and Myanmar and has apprised the committee of its steps to expedite the completion and constant monitoring of the projects.
