On a day the Centre cancelled its latest lateral recruitment drive in bureaucracy, the country’s two top fiscal policy advisors called for reforming and opening up of the permanent civil services to innovation and adoption of more technology friendly systems and methods in their functioning.

Infusion of talent with adequate domain knowledge and skills through lateral entry should be encouraged to enhance the quality and productivity of civil service establishment as a whole, according to Arvind Panagariya, Chairman, Sixteenth Finance Commission and NK Singh, Former Finance Commission Chairman, who spoke at two separate sessions at a Business Today event in the capital.

Asserting that India needs governance reform, Panagariya said that the country must find alternative ways to reform the civil service and bring talent into the system despite the latest roll-back of lateral entry appointments. 

Describing it as a “sad” development, Panagariya said “I feared that this might happen. Sorry to hear that”.

‘Lateral entrants as consultants’

He said that Indian system may now have to make do with bringing lateral entrants as consultants where they would supply the specialised services without having decision making power.

“Those of us who believe in reforms have to continue to push at it and find alternative ways to reform the civil service, and certainly talent has to be brought in,” he said, when asked about the roll-back.

Recognising India’s diversity and the need to take the country along, Panagariya — a lateral entrant himself — expressed desire for a less contentious political environment.

“We are a diverse country, and we have to carry the country along. One wishes we had a less contentious polity,” said Panagariya.

Panagariya said that it is a pity that the latest lateral entry initiative has been rolled back, but noted that Indian government will still need to bring in people as consultants. “This lateral entry was more genuinebecause it puts people in positions with decision making power. Maybe for a while our system will have to make do with bringing lateral entrants as consultants where they would supply the specialised services without having decision making power,” Panagariya said.

He highlighted that generalists who exist in the government are capable of acquiring specialised skills and “likewise specialists like me coming into government can acquire generalists skills”.

“Not everybody is able to do that but there are people on both sides... specialists who can acquire generalist skills to do things. Likewise within the government, generalists can acquire specialist skills. But we got to find ways,” he said.

In his session, NK Singh said questions need to be raised on what is the responsibility of a permanent civil service, and why should we have a permanent civil service. The issue has to be taken to the drawing board, he noted.

“Having a permanent civil service is not an end in itself. The end must be improving the life quality of people, pushing India into a growth trajectory above 7 per cent and realising the quest of developed India by 2047,” Singh said.

Singh, who spoke before the government announced the roll-back of its lateral recruitment drive, underscored the need to alter the recruitment process of bureaucrats both at the Central and State governments so as to align with today’s challenges of adoption and acceptance of technology. In fact, he endorsed the government’s modest effort in introducing lateral entry in the bureaucracy.

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