Government Mulls Policy to Limit Tenure and Pay for Consultants 

By | October 15, 2025

Government Mulls Policy to Limit Tenure and Pay for Consultants

The article reports that the government is considering a new policy framework aimed at limiting the tenure and capping the remuneration (pay) for consultants hired across various government ministries and departments.


Key Proposed Limits

  • Maximum Tenure: The central proposal is to cap the engagement period for individual consultants at no more than three years.
  • Remuneration Cap: The policy seeks to introduce clear ceilings on the amount of pay and benefits that can be offered to external consultants.

Rationale Behind the Policy

  • Cost Control and Fiscal Prudence: A primary objective is to gain better control over the expenditure spent on high-priced external consulting services, promoting fiscal efficiency.
  • Skill Transfer and Capacity Building: By limiting the tenure, the government aims to ensure that consultants effectively transfer their specialized knowledge and skills to permanent government employees. The goal is to build internal capacity and reduce long-term dependence on external expertise.
  • Reducing External Influence: The policy may also address concerns regarding the undue influence or continuous presence of external consultants in core policy-making areas.

Impact

This move is intended to streamline the government’s consulting engagement process, making it more accountable, efficient, and cost-effective, while simultaneously enhancing the competency of the civil services.

Category: News

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com