Need for reforms in External Affairs Ministry

[Subbiah Sridhar]

Apropos a write-up published on 10^th February 2025 in Money Control News titled ‘Is Sitharaman doing an Elon Musk’ regarding reduced budget of External Affairs Ministry, to the tune of almost Rs. 3,600 Crore less and for next year another Rs. 5,300 crore less.  The reduction in budgetary allotment seems in order as there was exorbitant amount being spent on avoidable expenditure. 

A huge part of MEA expenditure is being met from public exchequer, be it for expense on a Diplomat’s children education abroad in expensive international schools or on medical expense or on movement of container load of household goods every time a Diplomat moves from one station to another together with members of his family.   There are many other such expenditure being meted out from the public fund and surprisingly the individual’s matching contribution is very meagre – say from 0.12% to 5% maximum that too only for education and hospitalization respectively.  Instead of increasing the Budget, some such formula of a single package payable to a Diplomat should be evolved to curtail such avoidable expenditure on diplomat and members of his family abroad.   A Diplomat may if he or she takes along his or her members of family abroad then bear the expense, in say, 50 : 50 ratio.

Roughly an expenditure to the tune of around Rs. 2 Crores on a single MEA official on one posting abroad is incurred, which includes apart from basic salary, components like payment of foreign allowance, medical expenses, payment of school fees in expensive International Schools abroad for up to two children, container load of household goods up to 4,800 kgs, emergency passage, children holiday passage, rentals on fully furnished accommodation abroad, plus expense towards maintenance of garden, purchase of consumables and other maintenance work for residences.  

Not out of place to mention that most of the work of the Embassies in many Stations is carried out by the locally recruited employees owing to ‘language issues’ and in fact for all spheres of work, India-based diplomats and staff are totally dependent on the locally recruited employees.  Such Embassies spread across the world could easily be managed with the presence of just 2-3 Foreign Service officers from India to supervise the functioning of the locally recruited employees and run the show, instead of posting hundreds of India-based MEA employees abroad together with their family.   Handsome salaries are paid to maintain cost of living abroad.  It is rather absurd in the sense that school education, medical expenses, exemption from payment of local tax or income tax, subsidized fuel rates and beverages and last but not the least expenditure towards furnished accommodation are all taken care of by the Government, then where is the cost incurred by individual diplomat for maintaining living standards abroad?  The exorbitant allowances being paid just for purchasing of vegetables and groceries look humorous.  For that matter, even the groceries are brought in bulk using container load cargo for one and a half years till mid-term home leave (at government expense) and then stocked again for the rest of the tenure.  Where is the expense which necessitates payment of huge amount in perks and allowances?  If a sort of package is fixed per month to cover all such expense, there is going to be huge savings from public fund.

Many of the countries allow only the Member of the Mission and spouse to accompany to postings and if at all children are taken, then the school fee is borne by the concerned Diplomat and so is the expenditure on medical treatment, etc.  Even in India, there are many multi-national companies (MNCs) which do not allow for expensive children education abroad when their employees go abroad for work.   Even private sector employees going on posting abroad are not provided such luxuries as in MEA and instead some package is evolved and similar practice should be developed for Government officials going on posting abroad even.

The Vienna Convention on Diplomatic Relations, 1961 which is followed by all Diplomatic Missions do not speak about the educational facilities and comforts extended to the children of Members of Mission in so-called expensive International Schools.  The Convention mentions about the immunities, privileges and exemption from payment of customs duties on household goods and payment of local taxes etc. which is an added advantage.

The diplomatic affairs can be run with much less expense than the present arrangement and it is reiterated that taking along members of family abroad with the official, which is the main source of outflow of huge funds - be it towards enormous cargo, school fees or medical expenditure or air fares on transfer, mid-term home leave, children holiday passage, emergency, etc.  should be stopped forthwith and similar such timely corrective actions further needs to be taken by the Ministry of Finance and thereby save on our expenditure from Public Fund.

MEA is staffed with just about 850 Indian Foreign Service (IFS) officers tasked with formulating and executing foreign policy across 193 embassies and consulates worldwide.  While the annual intake of IFS officers has increased in recent years, it remains grossly inadequate and more and more career diplomats should be recruited and the savings from public exchequer from above curtailment or proposed package of matching grant can very well balance the recruitment of more Indian diplomats, with taking of members of family made voluntary subject to sharing of equal expense in 50 : 50 ratio, thereby enormously saving expenditure from Public Fund.

Yours truly,

(SUBBIAH SRIDHAR)

Writer & Former Indian Diplomat