SECOND REPORT STANDING COMMITTEE ON EXTERNAL AFFAIRS (1994-95) (TENTH LOK SABHA) MINISTRY OF EXTERNAL AFFAIRS DEMANDS FOR GRANTS (1994-95) Presented to UJk SaMra on Laid in RIljya Sabha on ., ' .... rh 1~~4 LOK SABHA SECRETARIAT NEW DELHI April, 1994/ Chaitrll, 1916 (Saka) COEANo.2 Price: Rs. 12.00 ~} f j 4, .~-.-.--- © 1994 By LOK SABHA SECRETARIAT Printed under Rule 382 of the Rules of Procedure and Conduct of Business in Lok Sabha (Seventh Edition) and Printed by Jainco Art India, Sarva Priya Vihar, Hauz Khas, New Delhi - 110016. CONTENTS PAGE COMPOSITION OF TI IE COMMITIEE (1994-95) .................................................. (iii) INTRODUITION ................................................................................................. (v) REPORT ............................................................................................................... 1 Minutes of the Sittings of the Committee held on 4.4.1994,5.4.1994 (FN & AN) and 19.4.1994 ........................................ 25 COMPOSITION OF THE STANDING COMMIITEE ON EXTERNAL AFFAIRS (1994-95) CHAIRMAN Shri Atal Bihari Vajpayee MEMBERS Lok Sabha 2. Shri Bijoy Krishna Handique 3. Shri Venkata Krishna Reddy Kasu 4. Shri V. Srccnivasa Prasad 5. Shri Anwari Basavaraj Patil 6. Shri Madhavrao Scindia 7. Shri Inder Jit 8. Shri A.B.A. Ghani Khan Chowdhury 9. Dr. Girija Vyas 10. Shri Mani Shankar Aiyar 11. Prof. (Smt.) Savithiri Lakshmanan 12. Shri Udaysingrao Gaikwad 13. Shri K.P. Reddaiah Yadav 14. Smt. O.K. 1l1ara Dcvi Siddhartha 15. Shri Satya Dco Singh 16. Shri Anand Ratna Maurya 17. Dr. Lal Bahadur Rawal 18. Shri Asht Bhuja Prasad Shukla 19. Dr. A.K. Patel 20. Shri Mahavirsinh Harsinhji Gohi! 21. Shri Syed Shahabuddin 22. Shri Mohd. Yunus Saleem 23. Shri Roshan Lal 24. Shri Rajnath Sonkar Shastri 25. Dr. Sudarsan Raychaudhuri 26. Dr. Sudhir Ray 27. Smt. Gecta Mukherjee 28. Shri R. Naidu Ramasamy 29. Shri Ebrahim Sulaiman Sait 30. Shri Chandra Shekhar (iii) (iv) Rajya Sabha 31. shri sikandcr Bakht 32. Shri Somappa R. Bommai 33. Shri Tridib Chaudhury 34. Shri Jagesh Dl'sai 35. shri Mohammad Yunus 36. Shri Bishambar Nath Pande 37. Shri Nilotpal Basu 38. shri G. Swami nathan 39. shri G.G. Swell 40. shri K. Mohammad Khan 41. Shri V.N. Gadgil 42. shri K. Rahman Khan SECRETARIAT 1. Shri G. L. Batra AdditiOrUll Secretary 2. shri R.V. Warjri Director 3. shri Ashok Sarin Under Secretary. INTRODUCTION I, the Chairman, Standing Committee on External Affairs having been authorised by the Committee to present on their behalf, this Second Report on Demands for Grants of the Ministry of External Affairs for the year 1994- 95. 2. The Standing Committee on External Affairs was re-constituted on 6th April, 1994. One of the functions of the Standing Committee as laid down in Rule 331E of the Rules of Procedure and Conduct of Business in Lok Sabha is to consider the Demands for Grants of the concerned Ministries/ Departments and make a report on the same to the Houses. The Report shal' not suggest anything of the nature of cut motions. 3. The Committee (1993-94) took evidence of the representatives of the Ministry of External Affairs on 4th and 5th April, 1994. The Committee wish to express their thanks to the officers of the Ministry of External Affairs for placing before the Committee the material and information which they desire in connection with the examination of the Demands for Grants of the Ministry for 1994-95 and for giving evidence before the Committee. 4. The Committee (1994-95) considered and adopted the report at their sitting held on 19 April, 1994. 5. For facility of reference and convenience, the observations and recommendations of the Committee have been printed in thick type in the. body of the Report. NEW DElHI; ATAL BIHARI VAJPAYEE, 19, April, 1994 Chainnan, Chaitra 29,1916 (Saka) Standing Committee on External Affairs. (v) REPORT 1. The Demands for Grants of the Ministry of External Affairs were laid on the Table of Lok Sabha on 17th March, 1994. The budgetary provision for the Ministry of External Affairs is entirely non-plan. Demand No. 24 of the Ministry contains the figures of Revenue as well as Capital expenditure which are as follows: (In thousands of Rs.) Revenue Capital Total Charged 2,00 2,00 Voted 800,99,00 43,99,00 844,98,00 2. The details of the actual Revenue and Capital expenditure for the years 1991-92 and 1992-93, Budget Estimates and Revised Estimates for 1993-94 and Budget estimates for 1994-95 of the Ministry are as under: REVENUE SECTION (In thousands of Rs.) SI. Major Items 1991-92 1992-93 1993-94 1994-95 No. Head Actuals Actuals BE RE BE Non-Plan Non-Plan Non-Plan Non-Plan 1 2 3 4 5 6 7 8 1. 2052 Secretariat Charged 1,00 1,00 1,00 General Services Voted 38,78,98 61,49,22 40,78,00 48,87,14 50,46,15 2. 2061 (8) External Affairs N 8(1) Embassies & 2,02,97,58 2,97,34,99 2,72,26,00 3,17,75,01 339,99,85 Missions 8(2) Special Diplomatic Expenditure Charged 1,00 1,00 1,00 Voted 92,29,54 1,02,92,51 1,18,12,00 156,29,00 129,47,00 B(3) International 19,27 12,70 30,00 10,79,00 2,00,00 Conferences/ Meetings 8(4) Central Passport 22,23,34 30,34,86 32,00,00 50,90,00 54,35,00 & Emigration Organisation 8(5) Entertainment 3,16,47 4,64,16 3,50,00 6,50,00 5,00,00 Charges B(6) International 11,59,55 15,81,64 16,23,87 21,75,73 21,51,57 Cooperation B(7) Training 12,80 16,84 15,00 20,00 20,00 B(8) Other Expen- 22,40,12 26,35,81 47,56,13 29,44,00 26,57,62 diture -Total major Head "2061" Charged 1,00 1,00 1,00 Voted 8,54,98,67 47,71,73,51 490,13,00 593,61,74 579,11,04 3. 2075 C. Miscellaneous 23,90,00 1,00 General Services loss by exchange 4. 3052 D. Shipping 8,30,00 1.00 t.l 5. 3053 E. Civil Aviation 1.36,17 1,00 1,07,00 4,30,00 6. 3605 F. Technical and 138,20,01 115,83,90 167,11,00 147,46,12 800,99,00 Economic Cooperation with other countries Total : Revenue Section Charged 2,00 2,00 2,00 Voted 5,33,87,99, 6,56,42,80 6,98,03,00 823,22,00 800,99,00 CAPITAL SECTION 7. 4059 Capital outlay 21,13,48 32,38,25 28,95,00 21,95,77 28,95,00 on Public works 1 2 3 4 5 6 7 8 8. 4216 Capital outlay 21,27 9,03,00 5,79,00 22,29,00 5,00,00 on Housing 9. 7453 Loan for foreign 6,00,00 1,00 1,49,92 1,00 trade export promotion ~ 10. 7605 Advances to 10,00,00 15,02,00 34,00,00 10,02,00 Foreign Governments 11. 7615 Miscellaneous Loans 31 1,00 1,31 1,00 Total: Capital Section 21,34,75 57,41,56 49,78,00 79,76,00 43,99,00 Grand Total Charged 2,00 2,00 2,00 Voted 5,55,22,74 713,84,36 747,81,00 902,98,00 844,98,00 5 3. The Ministry of External Affairs have informed the Committee that inspite of stringent austerity measures taken it has not been possible to contain the expenditure within the BE 1993-94 of Rs. 747,83 Crs. The RE 1993-94 works out to Rs. 903.00 Crs. reflecting an increase of Rs.155.17 Crs. over the BE 1993-94 OVERVIEW 4. The BE 1994-95 of Rs. 845.00 Crs. is Rs. 97.17 Crs. more than BE 1993-94 and Rs. 58.00 Crs. less than the RE 93-94. The break-up of BE 94-95 is as under: (Amount in Crores of Rupees) Revenue 801.01 Capital 43.99 845.00 The Revenue allocations include Rs. 2.00 Lakhs as charged exspenditure. 5. The expenditure on establishment represents 52.63% of the total budget of the Ministry. This is made up of expenditure on Missions/posts abroad (40.23':7,), Headquarters (5.97%) and Passport & Emigration (6.43%). The break- up on the rest of the expenditure is as fol\ows : Aid/ Advances to Foreign Governments 20.95% Special Diplomatic Expenditure 15.32% Capital Outlay 4.02% Other Activities (grant-in-aid to 7.08% various institutions including ICCR) Expenditure on Headquarters 6. The estimated expenditure on the Headquarters Organisation of the Ministry during the current financial year 0994-95) is expected to be Rs. 50.47 crores which is 6% of the total estimated revenue expenditure of this Ministry. Out of this, Rs. 11.86 crores will be on Salaries and Wages, Rs. 11.00 crores on Travel Expenses, Rs. 13.85 crores on Office Expenses, Rs. 6.00 crores f'" Publicity and Rs. 6.90 crores on Rent and Maintenance. Expenditure on Missions 7. The total estimated expenditure on Indian Embassies/Missions abroad is expected to be Rs. 339.99 crores during the current financial year which 6 works out to 40.2% of the total estimated Revenue Expenditure of the Ministry. Out of this, an amount of Rs. 144.78 crores is for Salaries (including Foreign Allowance), Overtime allowance and Wages, Rs. 38.73 crores for Travel Expenses <Transfer Passages/Home Leave Passages, and Local Tours), Rs.