Odisha Government Strengthens Rules for Hiring Consultants

quick Summary

• The Odisha government has decided to limit the appointment of external consultants across departments starting april next year.
• state departments are required to assess their need for consultants and propose an optimum number to the Finance Department.
• traditionally, external consultants were engaged for policy reforms and project management to improve efficiency and institutional memory among government employees.
• Concerns arose regarding indiscreet engagements, underutilization of in-house capabilities by employees, and excessive dependency on consultants.
• Allegations surfaced that consultancy appointments favored influential individuals and allowed misuse of funds, especially in the District Mineral Foundation’s spending.
• A high power committee will decide on consultant numbers from April 2026. Consultant remuneration will require prior committee approval.

Indian Opinion Analysis

The Odisha government’s move to restrict external consultant appointments can be seen as a step toward strengthening internal capacities within State departments. By reassessing dependency on such resources, this approach may encourage better utilization of existing talent among government employees while reducing discretionary decision-making that could lead to financial irregularities or conflicts of interest. However, balancing the reduced engagement with the need for specialized expertise remains critical; over-reliance on in-house staff without adequate training might risk efficiency. Addressing systemic issues like alleged favoritism or fund misuse could enhance transparency while ensuring governance standards are upheld.

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