THE GOVERNMENT is working on a new policy that seeks to cap the number and tenure of consultants engaged by ministries and departments, and also standardise their remuneration and approval process, The Indian Express has learnt. The Ministry of Finance is likely to steer the formulation of the policy, though other ministries may also be roped in, government officials said.The proposal, which was discussed recently among departments and ministries, is likely to limit the engagement of Young Professionals or senior professionals/ domain experts to no more than three years in a single ministry or department. Young Professionals can work in another department, but the number would be capped at five years across the government.The government is also keen to ensure greater uniformity in remuneration — to be fixed at Rs 70,000 for highly qualified Young Professionals with over five years of experience, Rs 60,000 for those with three to five years, and Rs 50,000 for freshers.Based on a response by the Finance Ministry to an RTI application, The Indian Express had reported in January 2024 that 44 Central departments have hired 1,499 consultants from external agencies, including the Big Four i.e., Ernst & Young, PwC, Deloitte and KPMG, incurring an annual expenditure of Rs 302 crore.This was in addition to 1,037 Young Professionals, 539 independent consultants, 354 domain experts, 1,481 retired government officers, and 20,376 other low-paid staff hired on contract by 76 departments, either directly or through outsourcing agencies. The expenditure on these is, however, not available.The numbers have not really changed much since then. Latest available official data shows there are 963 Young Professionals, 686 professionals and domain experts, 1,453 consultants through agencies, 1,476 retired government employees, and 27,624 other outsourced staff, currently engaged with various ministries and departments of the Central government.According to officials familiar with the discussions, the Centre is keen that all such appointments obtain the approval of the concerned department’s Secretary, and be hired in consultation with its Financial Advisor (usually an Additional Secretary-level officer). The engagement is expected to have clear terms of reference, periodic assessments, and adherence to existing budgetary and procedural norms.Story continues below this adEach division in a ministry, typically headed by a Joint Secretary or Additional Secretary, may be allowed to engage no more than one Young Professional.The move comes amid criticism there are wide variations in pay and tenure of the consultants, and ministries have not fixed an upper ceiling on the number or duration of consultants they engage.Young Professionals are generally hired to provide domain-specific expertise and analytical support to ministries. They are typically between 21 years and 35 years of age, with qualifications in economics, public policy, law, management or related fields. Officials said there are about 300 such positions across the central government.For other professionals and domain experts engaged as consultants, the Centre may fix a monthly remuneration ceiling of Rs 1.9 lakh for those with 21–25 years of experience and a postgraduate or advanced technical qualification with a proven leadership record. For those with 16–20 years of experience, the proposed ceiling is Rs 1.8 lakh, and Rs 1.2 lakh for professionals with 11–15 years of experience.Story continues below this adA cap of one such professional/ domain expert per ministry or department is also under consideration. Officials said there are about 80 such positions across the government, meant for individuals with significant experience in academia, industry or consultancy.For consultants hired through agencies, particularly for project preparation (such as detailed project reports or feasibility studies) and implementation, officials said it is difficult to impose a numerical cap since their engagement is project-linked. In such cases, the government is considering a ceiling of 2% of the project/ scheme cost, or Rs 50 crore, whichever is lower, as total consultant remuneration.Where professional service costs exceed this threshold, especially in infrastructure, technical or R&D projects, approvals may need to be sought from the Expenditure Finance Committee, Public Investment Board, or Standing Finance Board, in line with the General Financial Rules (GFR) and the Manual of Procurement of Consultancy Services, which mandates competitive bidding.Officials said the remuneration of retired government employees engaged on contract (usually to fill temporary vacancies) is already regulated, and their numbers correspond with existing requirements.Story continues below this adSimilarly, remuneration and service terms for outsourced support staff (drivers, data-entry operators, multitasking staff) are governed by contractual provisions and the Manual for Procurement of Consultancy and Other Services issued by the Department of Expenditure. Such outsourcing, officials said, costs less than creating equivalent manpower posts, where expenses are more than double.