XV Finance Commission holds productive discussion with Smt. Sushma Swaraj, Minister of External Affairs and other officials

Commission conscious of challenges and opportunities of foreign policy of an increasingly interdependent India

As part of Finance Commission of India’s interactive process with major central ministries, discussions were held today with Minister of External Affairs Smt. Sushma Swaraj and other senior officials of the ministry. The Commission led by Chairman Shri N. K. Singh and other members Sh. Shaktikanta Das, Dr. Anoop Singh, Dr. Ashok Lahiri and Dr. Ramesh Chand was appraised of the broad architecture of the working of the foreign affairs in their detailed presentation. The highlights of the meeting are:

1. MEA’s budget has remained less than 1 % of the total budget of the GOI’s budget which needs a fillip with the kind of activities it has to undertake. Out of total budget, Establishment expenditures have been consistently below 30%. Around 25% of the Establishment Expenditure is used for Central Passport Organization. Of Non-establishment expenditures, Aid (Grant plus Loans) which is major head standing at around 58%, is facing shortfall of about 3900 crores.

2. MEA is working on strategic connectivity, shaping choices and balancing interests & creating goodwill by various development projects, humanitarian assistance and aids to friendly countries, innovative diplomatic outreach and partnerships. Development partnership of about 27.7 billion dollars is in place at present with various countries under India’s Neighborhood First and Act East policies. To increase the outreach and efforts towards such partnerships, 18 new missions are to be opened by 2022 in various countries which need additional resources.

3. MEA is working vigorously to enhance public service delivery through a network of 322 Passport Centers (including Post Office – PSKs) across the country, up from mere 77 passport centers in 2014 with excellence. Post Office Passport SevaKendras, launched in January 2017, have been a major policy decision for last mile coverage. MEA has a target of Passport Centre in every parliament Constituency in future.

4.  As part of its outreach to the Indian diaspora as well as Indian citizens, MEA has stared various programmes like Bharat Ek Parichay, Know India Programme, Pradesh Me Videsh and SAMEEP.

The Commission was conscious that contours of foreign policy of an increasingly interdependent India entails multiple challenges and opportunities. The emergence of other major powers in this region and the need for timely completion of projects initiated in number of friendly countries, needed adequacy of resources.

The opportunities in Africa and other developing countries also needed to be harnessed to the country’s advantage and predictability of finances was central in these endeavors. Enhancing the reach and quality of India’s diplomatic power needed further strengthening by both the ministry as well missions abroad. The need to open so many new embassies in different parts of the world in near future and improving the public service delivery by a network of Passport Centers across the country, both need finances for physical infrastructure and manpower.

Chairman and Members tried to understand the trade relations of India across the globe, its challenges and efforts done to enhance this. Overall, Commission was given an understanding of the challenges in matching India’s diplomatic power with India’s economic power as world’s fastest growing emerging economy in 21st Century – The Asian Century.Following today’s preliminary meeting, more such meetings and consultations will be held between the Ministry and the Commission.

Diplomatic financing: predictability and resource adequacy urged to expand missions and consular services, including passport service improvements and development partnerships. The Finance Commission was briefed on the Ministry of External Affairs' constrained budgetary position, with its allocation under one percent and establishment costs absorbed significantly by passport services, while non establishment aid faces a notable shortfall. The Ministry set out plans for expanded development partnerships, opening new missions, and scaling a nationwide passport centre network, stressing that predictability of finances and resource adequacy are essential to implement projects abroad, expand diplomatic presence, and improve consular service delivery.