New Delhi: Finance Ministry's delayed and inadequate release of funds to External Affairs Ministry has adversely impacted implementation of developmental projects in various countries, raising questions about India's "credibility and commitment", a Parliamentary Panel has said.
The Standing Committee on External Affairs has also criticised the Finance Ministry for not providing required funds to MEA and noted that the failure to fulfil commitments made at the highest level has the potential to affect India's foreign policy objectives.
The panel, in a significant observation, also expressed concern over "incongruously small size" of the Indian Foreign Service given the enormous tasks and challenges.
Citing an example, the committee referred to the delay in construction of Parliament building in Afghanistan by India due to poor financial condition of the agencies engaged.
"The Committee strongly believe that the commitments made at the highest political level with Cabinet approval are an integral part of India's foreign policy and it should be mandatory for Ministry of Finance to honour such decisions and provide funds for such commitments," the panel said in its fourth report.
To ensure timely release of funds, the panel suggested setting up of a separate corpus with specific mandate of fulfilling India's commitments to international projects and aid programmes.
There was an imminent need for India to define its aid policy with "clear and unambiguous aims, objectives and targets", the Committee said, observing commitments made to several countries could not be fulfilled due to inadequate funding.
Referring to the resource crunch faced by External Affairs Ministry, the panel said though it had sought Rs 26,111 crore in 2014-15, it was allocated only Rs 14,730 crore, with a plan outlay of Rs 5,100 crore.
"The Committee were concerned to observe that there was a vast gap between the allocation sought by the Ministry and the actual allocation made," it said, adding the funds given to the Ministry were grossly inadequate considering India's aspirations.
Commenting on small size of the IFS, it said considering the challenges, which are "imminent and urgent", the Ministry was short of diplomats to address them. It also spoke about the MEA's plans for lateral entry at various levels.
The Committee expressed happiness over the External Affairs Ministry taking up with Pakistan the issue of not making timely contribution to the operational budget of the South Asian University.
"They have been assured by the Pakistani member that their government was processing the contributions to the university. The committee hopes that the Pakistan government will fulfil its assurances," the report, tabled in the Lok Sabha last week, said.
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