The Ministry of Planning should thus, in our yiew, be composed of two organs:

CHAPTER V CHAPTER V III

8.52 The Ministry of Planning should thus, in our yiew, be composed of two organs:—

235

the foreign Exchange budget and isresp'onsible'for foreign debt manage

ment. The important point to note is that the E xternal1 Resources Division is unlike any other sectoral or economic division of the Plan-

. —, . . l*i I U\i ) $* * j. * \v--* " * -

mng Commission. It is operationally similar to any other Division of the Government. Therefore, this Division should be headed by a Secretary and function as an independent liivisioii under the overall supervision and Control df the t)eputy Chairman of the Planning Com- i p i ^ i o j i t , , fc<$veve*? tinaking it (a. part q£ the Planning Commis-

¥!ni#®r?w^ d, ^ viCTsly be the Minister for this Divjsipnj ( .(The./atiofiale. for locating thijS responsibility with the Plan- Ipjig.Mi^ist^r lje^ i$ the.-ffiCt.that he .will be in the most strategic posi- tiq ^ ,t^ .p 4 9 r? ^ d f iftpd1 a?s?ss the,requirements of foreign aid to tneet tJiq^qQ^omj^ fngeds qf-tfye, country, ,Sjnce the Planning Commission under his charge }yjill jjp-settijig* development priorities and process development schemes and programmes, he will be in a position to represent the Government, intelligently and effectively5 in matters rela

ting to the mobilisation, $i)d, utilisation- of external, .assistance. It should be specifically noted that the bulk of external assistance come as development assistance and hence*naturally ^concern the Planning Ministry rriost; directly^ Furthermore;, the.tied* nature of much of the development assistance with regard.both , to the .source- of supply and specific development projects, makes the negotiations of such assistance a part of the very process of project'evolution*. I t would be efficient-, therefore;, to lpcate b.oth these functions in the .same Ministry. ,

8.52 The Ministry of Planning should thus, in our yiew, be

and the. External .Resources'Division should have a-full Secretary to th^Govpjnment,;,

trol with himself leaving Public Health to' a State Ministeir.

Ministry of Public Works and Urban Development 8.54' The existing arrangfemefit may continue.

Ministry of Relief and .Rehabilitation <

8.55 This is a temporary, and clientele based organisation and ihe existing organisation may continile. -

Proposed Ministries and Divisions:

8.56 i n the light-of the discussions in the preceding’ jparagraphk, we propose that the following may be. the Ministries and Divisions thereunder:—

(1) Ministry of Agriculture and Rural Develo,prrientj-|- {j 5 Ministry of Public Health

8.53 This Ministry consists of.tw o Divisions:—

I* ! *

(a) Family .Planning, and

<b) Public Health,,(Preventive, and Curative)}'.. -

(a) Agriculture Division, I

(b) Co-operatives and Rural Development Division, and (c) Forests, Fisheries- and Livdstock Division;

(2) Ministry p f Cabinet Affairs—

•« * , ti ^* ^{* i}

{ . « ‘ i

, (b) Cabinet Division;

(d) Personnel Division1, aftd' (e) Prime Ministers' Sec^fai-iat;'

(3) Ministry of Communication and Tfarispoft—

(a) Civil Ayiatioa'Division,. > >.

(b) Inland Water Transport, ^d rts ahd Shipping Division, (c) Post, Telegraph and,Telephone' Division,'

(d)„ . ^ i y ^ j ^ v ^ d , <

(e) Roads, Highways and Road Transport Division;

^4): Ministry-ofrfidtib&tion1

(a) Cultural Affair'ffand :Sp6rts 'DivisiOri, (b) Educ^tioxi Division, bnd:

(5) Ministry of Fin&'ttce-

(a) Administrative and Expenditure . Control Division;'! t (b) Budget Division,,

(4), E^tQrp^l-FipaiipecDivisioji,' and,, (e) Internal Finance Division;

(6) Ministry of Fopd;

(7) Ministry-of Foreign A ffair;. ,

(8)- Ministry of Foreign^ Trade!,1 'Corhmerc^i a'nd 'Civil' Supplies—

(a)' iForeignlTrade Divisions,* and

(b) Commerce and Civil -Supplies T)iVision;

(9) Ministry, of Home Affairs;

( 10| ‘ Mifiistfy to’f IndiistfftS

(a) Industries (including the Fufcl Wing) -Division, and (b) Nationalised (Industries? Divisiori^

(a) Information Divisipn,, afid (b) Radio and Teley jsioj)I>i vision;

(12) Ministry, of .Jute;

(13) Ministry of Labour and .-Social I Welfare^—

;(a) iJ^b&ur.Divisidn, >and' (b) Saeial Welfare! Division;1

(14) Ministry of Land Admmistratibri' lLahti'Refdrms and Local Government-8-*

(a) Land Administration and ^andJReforms Division, and (b) Local Qovprnment ;Di vision;

(15) Ministry of Law and Parliamentary Affairs— 1 (a); Law iDivisioH, !and

(b) Parliamentary Affairs Divisions (16> Ministry* bf -Natural Resources—

(a) Mineral Resources Division, (b) Power Division, andf<

l 1

(17) Ministry of Planning—

(a) External Resources Division, and (b) Planning Commission;'

• (l.$X;Mihistryijof Public Health and Population C o n tro l^ ’ (a) Population Control- and Family Planning Division, and (b) Public Health 'Division;

(19) Ministry of Public Works and Urban' Development-*- (a) Housing and Urban Development jDivisiojr, and') (b). Work? Divjsi,oi);;and

(20) Ministry of Relief ^arid-Rehabilitation.*

23 9

8.57 When the urgent Relief and Rehabilitation Programme would-be over, this portfolio mtfy gd t<5 ‘a Miriisfef of State.' Similarly, let us hope it . would be p ^sib je through techndlogical i>reak-through t<pjplos^ the, present widening-fop4 gap.!u,The need for .a sfull fledged Food Ministry would at that time disappear.

8.58 The suggested main^usiriess t^ tht'MiriiSfn^s* ai^drgdrtisa' t |^ s f tivat jpa%f 4>tecpdwder <may «be «fentft-App<todix

Size.of. jthe.Secjetariat>

'8v§9!i' 5At'|),ara^7.1:6, $£lm ve nM iione'd the'role of the Secretariat This should i'e'stilt in th'e'^dtictiori df1 tHd siz$ the Secretariat ' l ^ e ifapMiried ’ growth knd changes'in the' ^inistH es’ ‘liave resulted ,in an (to6¥-si£ed Secretariat iMabl6't6 function efficiently. 4 The" reorganisa

tion'of the Secretariat may' take' place- on thd'Mes of' our recdmmenda- tfiyfiS # $>afcp 7.9 (nifefger ol* dWelopirieA%l''rklhiistfi^su andJ Depart

ments),' pAi*a! 10 *(retdntioii •of'reûMtdr^' diitf promotional MhiStri&s' aW&Dep&t&6nts)‘&nd par^ VÔ'tt^drgdiiisa'tidn t)f ‘internal s^rifdture).' If !is difficult td'foretfa'st the actiial' size of thfe Secretariat in ‘terms of number of officers and ^tkJf. 'THe’êt-u^' of feacli''Ministry' should he carefully reviewed in the light pf the business allocated to it;>tl^ : deôlu;

t^ H d ed ^ lid k i oil !to! thfe staff dfe&liftg ‘with’ certain business even after tfre‘1tfknsfer’,6f thkt’ btfsiness to another M inistfy:? Such duplication inii^t be!8^6id6d.n ."'The proposed ^kmimstrative k(rforms and Manage

ment Division shoiild undertake the task ofstaff review in fconsultation

>Vi(h<the l!Vfjnisti'v otFiiranee Md ftie concerned Ministry._t OtWrSe^refaHaft O ^ ls k T ib n s

8160" A part from the Ministries, there are the following organisa

tions Q fSecretariat1 fiature:—

i) The Parliament1 Secretariat,

; i *« * •* ' t \ a K ii) The President’^ Secretariat,

(jv), J he Fublic Service Commissions.

A^refeferieetb the Pdblid'-SerVlce CbmmiSsfoAs has’’already be6n niadB inGhapterllY. 's - The '-remaining: 'drgatiiS^tibii^ fria^’contfni^?

present form.

QiiijMid.siiiai^.aJid.^dininistrativ^oTtiljiinals

,8:6 ]xHjHe,wouldalso TecOHiin6h#itlle’ipj)dihfnient ’ ofafr OrriblidSi man and the setting up of Administrative Tribunals as envisaged in Articles 77 and 117 of the Constitution. The S&'f6uMVbeetfySr§a*k-

$ e?t the daily life {and: ^ v i t j e s ^ f ^ peppl?.. „(Th^y/fshould,rtjbe^-, fore, ;have. ade^m te^rot^^ip^.agam qt ^fbi(t r a ^ e^ecujtiye, a c tio s . ^d>

an-angemgiits for tlie , j ^ s g ^ J h e j r g^y an ces.l J?q legal

° k '$ 8 P^?U<h a g a in ^ .^ itr a ty j actipn?. of. the,/i\nctionai;ie^ £oYefnmei)t,,or -their .difot^iness, m

«, The !aPipoijitinent..pf1 ^n-Qmbydsip^n;gn<jL,tlje ^ t t p g

u? A ' ^ i W f towards the

red re^ of the joeqple’s grievances in tjh^Ls regard.;

Co-brdin&ioit

, V.OrOifdinaUop^^qr va^ipus

lS%striesând agencies, êsjppppil?^, for ?:e§ulato/x ^ developmeptal activities ,1s jOne.p^tê piost cruci;alt(task i?f„the,hjighe$

On the one hand^in A e ra m e of

exercised in the traditional pattern by lengthy procedures for inter- Ministerial clearance and cross-references$^ic,ula4$ ^ i&e, Ministries*

of Finance, Planning and Law. On the other hand, co-ordination

—t:-d±l ---O—,,-- — },- ,--- ---1--- ^ --- it*--- ■ I * 1J--- L-j—5--- 2 An analysis o f public complaints received by the Comnijssjonpr-of Public ,Grievance^

in India during April—June, 1966 showed that 60%' o f the 'complaints related to delays, 2% to wrong decisions, 1% to rud^.beha^ioyr jan^,th<p5r e i ^ i a i i j j n j ' t o other causes inducting corruption. (Maheswarl, S.R.”—Th’e" Administrative Reforms Commis

sion: Lakshmi Narayan Agarwal, Agra, 19,72,,page.,134.)-

241

among, policies and programmes is poor and ineffective particularly in the-field of economic,management- and development administration.

Both'these ‘have combined to make, 'the Secretariat a slow-moving machine svhet£* decision* making prpcess is diluted and lengthy.

8.63 Some of these weaknesses could hot probably be avoided in the immediate post-liberation period during which a new National Government >had to-be super-imposed on a provincial set-up. Effec

tive co-ordination has-been hindered by too quiqk expansion df some Ministries* and agencies and lack of clear delineation of functions and responsibilities fin the form of “Rules of Business” among the Ministries and agencies of the Government. Added to these, a tendency has been observed among certain Ministries and agencies to attempt to guard their respective “preserves” exclusively.

•'8-64 The various recommendations for reorganisation of services an0 fktionalization of administrative system could provide simple and more effective co-ordination at each level of the Government. The gVoiiping of subjects on* the basis of homogeneity and manageability of functions’ in'-variouS' Divisions and Ministries provides for co-ordination at the base'.

8.65 F o r ‘Bangladesh, a nation committed to social transforma

tion and economic development, there is an urgent need for quicker policy decision and faster execution of various programmes. This

* k , if \ ^

calls for simplification of procedures and reduction to minimum neces

sary inter-Ministeriai consultation and references and a clear defining of responsibilities at each level providing a .greater degree pf admin

istrative flexibility. In this context, it is necessary -that the Rules of Business for the Secretariat and various other rules and regulations are updated and finalized quickly to remove overlapping and confusion with regard to division of ,functions and procedures for work.

8.66 In the field of economic development, there' is an immediate need for'rationalization o f‘the system oJ: economic management of development programmes, the nationalized industries' sector and the

private; sector of the economy. While the Ministries should be made completely responsible for implementation of development policies', programmes and projects, there should be a central monitoring system for identifying major bottlenecks/problems and for-suggesting- quick remedial measures. The Planning Commission may serve this purpose effectively by combining this monitoring responsibility with its5 usual evaluation and review functions. This monitoring -system ‘will be ari

•aid' to effective co-ordination .of the- execution 'of development pro1- grammes and' the implementation' of - various economic and regulatory policies. The National Economic Council will have to be more close

ly involved in the<■economic management policies and*'programmes.-' 8.67 Among the institutional arrangements for co-ordination,at the top, the' Cabinet serves as the overall co-ordinator for more impor

tant policies and decisions. The Cabinet Committees including the National Economic Council may, among them, coyer all the Ministries and provide the most suitable .arena for finalising..policies involving inter-Ministerial activities and resolving inter-Ministerial conflicts.

These Committees may be served by, the Secretaries Committees, .which should study and analyse in depth ^various issues ^nd illuminate policy choices and suggest solutions before the Cabinet Committees.

The responsibility for intra Divisional co-ordination in a ,multi-Divi- sional Ministry may be assigned to one of the senior Secretaries in the Ministry.' A t'the Division level, the Secretary as the official head is the co-ordinator for his Division and the main channel for inter- Ministerial consultation and co-ordination a t:the qfficial leVel.

Delegation of Financial low ers

8.'()8 Delegation of responsibility and power is an essential

„ „ n*, * , . i . m:. J ,* - •» 1

feature of any modern administrative system. The. significance of

, n t:* . h i a ut.t'-J u ►.%»* • n , M'stftM delegation ana its two main forms .(intra-organisation and intef- organisation) nave been discussed in para 7-43 of Chapter VII. We would wish to offer a few comments,here on the delegation,of financial powers from the Ministry of Finance, to, t the. ya.^iou^ administrative Ministries and Departments^

2 4 $

'8.69 A major reform in financial administration was carried out in 1960 with the introduction of revised system of financial control and budgeting.,- The new system failed to achieve its objective of instilling a greater sense of financial responsibility in the administra

tive Ministries, quicker disposal of business by providing a built-in system of financial advice and a useful liaison with the Ministry of Finance through the agency of Financial Advisers. The revised system had a number’ 6f deficiencies and resulted in a number of problems. The first broblem it created was the reduction in the po\Veft of-'the Ministries of Defence, ‘Railways and Communication.

The Financial Advisers in these Ministries had “treasury powers” i.e., they'could give1 “expenditure* sanctions1”. It resulted i n ‘increased referenced to the 5VIinistfy of Finanbe.’ While the Ministry of Defence in the former Pakistani days managed to get powers more than what they* should' have through their usual extra-ordinary measures, the other two Ministries failed to get this power restored to themselves.

This was, hoy/evjer, not the solitary instance in the reduction of powers.

While the system had delegated large powers to the administrative Ministries, all these powers had to be exercised in consultation with the Financial Advisers. Earlier, Ministries had certain financial powers which their officers could exercise without consulting any finance Offifcer. While introducing new financial system, these powers were also1 included fn the list of subjects in which consultation of the Financial Advisers-was required. The result'has been that in each administrative Ministry, a ’miniature Ministry of Finance has devqjpped around the Financial Advisers. Of .the-other defects of th6 system, the more, important are the following:—

(1) A ll the references to the Ministry of Finance have to be routed- through the Financial Advisers and returned to'them.

This causes, delay;

'2> The Financial Advisers have to work under dual control of the Finance Secretary and the Secretary of the Administra

tive Ministry;

(3) The duties and responsibilities of the Financial Advisers have not been clearly defined and as a result the degree and

the manner of their utilisation have .differed in various Ministries; and

(4 ) .The delegation of financial, powers has all been to the Principal Accounting Officer and head of operating Depart^

merits. It does not give powers to other officers of the Ministry.

8.70 It appears that the Ministry of Finance .is performing certain functions which could better be performed by the administra

tive Ministries and as a result, the Ministry of Finance has been ,unabje to discharge certain responsibilities adequately \vhich cannot be performed by pthers. The principal function of the Ministry of Finance in relation to other Ministries and financial control includes the following:—

(V) To take stock of the resource position and preparation ,of annual budget;

(2 ) To ensure that the administrative Ministries do not exceed budget allocation;

(3) To ensure that the staiidard of financial proprieties are uniform in all the Ministries;

(4 ) To ensure speedy and effective system of accounting; and (5 ) To promote advanced economic research with a view to

improving the ways and means .and devising measures fpr reducing the level, of expenditure. ,

It appears that most of the energy of the Ministry of Finance is being spent on the first three items ahd the last two are being negleeted.

While the responsibility for preparing the budget must remain with the Ministry of Finance, complete responsibility to ensure that budget allocations are not exceeded, may be given to the administrative Ministries. - A uniform- standard of financial propriety could also be ensured by laying down general guidelines. The reduction in the work load of Finance Ministry would enable it to concentrate on the more important work which cannot be performed by, the other Ministries.

245

, 8.74 i Failure to'delegate'to thexxtent reqiiired is not geridratirig the expected sense of financial responsibility in the administrative Ministries, Inflated expenditure proposals are being submitted to the Financial Advisers and to the Finance Ministry in the apprehension that some cut* would fee made by them. The apprehension is not always unfounded. At the same time, a large establishment of Financial Advisers have to-be'maintained sVith many of 'their post office functions.

8.72 The reluctance to .delegate ta the .extent required ds due to

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