Odisha Government Sets Stricter Rules for Hiring Consultants

Rapid Summary

• The Odisha government has decided to limit the appointment of external consultants across various departments starting April 2026.
• Departments are instructed to assess their actual need for consultants and seek prior approval from the Finance Department for engagements.
• A high-power committee will determine the optimum number of consultants required,and remuneration payments without its approval will be restricted.
• External consultants were previously appointed for policy reforms,project management,enhancing governance efficiency,and leveraging institutional expertise.
• Concerns about indiscreet hiring practices have emerged, alleging favoritism and misuse of funds by influential individuals through consultancy arrangements.
• Allegations include financial mismanagement in District Mineral Foundation funds linked to external consultant engagements.

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Indian opinion Analysis

The Odisha government’s move to restrict external consultancy appointments signifies a shift towards emphasizing in-house capabilities within state departments. while previous reliance on external experts aimed at fostering policy reforms and operational efficiency, allegations surrounding favoritism and financial irregularities have highlighted potential risks associated with such engagements. By instituting stricter oversight through a high-power committee and curbing indiscreet hiring practices, this decision may bolster accountability mechanisms within governance structures.

Though, challenges may arise during implementation: balancing efficient project execution while ensuring optimal utilization of internal resources could require significant capacity-building efforts among government staff.The step suggests a broader focus on enabling sustainable institutional development while safeguarding public resources from misuse-an approach that could inspire similar measures across other states confronting comparable issues.

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