In a sweeping administrative overhaul, the Government of India is finalising a new policy to regulate the engagement of outside consultants across ministries and departments. The proposed framework, spearheaded by the Ministry of Finance, aims to introduce uniform remuneration, a cap on tenure, and a limit on the number of consultants that can be hired by any government entity. The move comes amid growing concerns over inconsistencies in pay structures, indefinite extensions, and lack of transparency in consultant appointments.
The policy is expected to be rolled out in phases starting November 2025, and will apply to all central ministries, autonomous bodies, and public sector undertakings that engage external experts for policy, strategy, or technical support.
🧠 Key Features of the Proposed Consultant Policy
| Regulation Area | Proposed Norms |
|---|---|
| Pay Structure | Uniform monthly remuneration based on experience and role |
| Tenure Cap | Max 3 years per department, 5 years overall |
| Consultant Ceiling | Limit on number per ministry (to be notified) |
| Approval Mechanism | Mandatory clearance from Finance Ministry |
| Re-engagement Rules | Cooling-off period of 1 year post tenure |
The policy will also mandate performance reviews, conflict of interest declarations, and digital tracking of consultant contracts to ensure accountability.
📊 Current Consultant Engagement Snapshot (2024–25)
| Ministry/Department | No. of Consultants | Avg Monthly Pay (₹) | Tenure Range |
|---|---|---|---|
| Ministry of Health | 42 | ₹1.25 lakh | 6 months–4 years |
| Ministry of IT | 58 | ₹1.75 lakh | 1–5 years |
| NITI Aayog | 33 | ₹1.5 lakh | 1–3 years |
| Ministry of Environment | 27 | ₹1.1 lakh | 1–2 years |
| Ministry of Finance | 49 | ₹1.6 lakh | 2–5 years |
The Finance Ministry noted that some departments had no upper ceiling on consultant numbers, leading to budgetary strain and duplication of roles.
🧾 Objectives Behind the Reform
- Ensure parity in pay and tenure across ministries
- Prevent consultant dependency and institutional bypass
- Promote merit-based selection and transparent hiring
- Align consultant roles with national priorities and deliverables
- Reduce fiscal burden and streamline administrative efficiency
The reform is part of the government’s broader push for civil service modernization, digital governance, and performance-linked accountability.
🗣️ Reactions from Bureaucracy and Policy Experts
- Retired IAS Officer: “This is long overdue. Consultants were becoming parallel power centres.”
- Think Tank Director: “Standardisation will improve quality and reduce misuse.”
- Consultant (anonymous): “We need clarity on re-engagement and career pathways.”
| Stakeholder Group | Reaction Summary |
|---|---|
| Civil Servants | Supportive, demand stricter oversight |
| Consultants | Concerned about tenure limits |
| Policy Institutions | Welcome move for transparency |
The government is also considering a national consultant registry to track engagements, qualifications, and performance metrics.
🧭 Implementation Timeline and Oversight
| Milestone | Expected Date |
|---|---|
| Draft Policy Circulation | October 15, 2025 |
| Inter-Ministerial Review | October 25, 2025 |
| Cabinet Approval | November 5, 2025 |
| Phase 1 Rollout | November 20, 2025 |
| Full Implementation | January 2026 |
The Department of Personnel and Training (DoPT) will coordinate with the Finance Ministry to ensure compliance and integration with existing HR systems.
Disclaimer
This news content is based on verified government proposals, administrative data, and stakeholder inputs as of October 11, 2025. It is intended for editorial use and public awareness. The information does not constitute legal advice, employment guidance, or fiscal policy endorsement and adheres to ethical journalism standards.
