K.R. Srivats

New Delhi , Sept. 17

TWELVE firms have evinced interest to be roped in as consultants for the two pilot projects that are to be taken up for expenditure classification changes in the Department of Education and the Ministry of Health, a top Finance Ministry official has said.

"We are going to seek the help of consultants for the pilot projects on changes in the classification system. There is an IT element in the pilots for which we necessarily require expertise. About 12 firms, both Indian and foreign, have shown interest in the two pilots," Mr M.J. Joseph, Joint Controller General of Accounts, told Business Line.

He said that one of the prerequisites for getting selected as a consultant is familiarity with international expenditure classification systems such as the International Monetary Fund's Government Finance Statistics (GFS) system of classification. Mr Joseph, however, declined to comment on the names of firms that have shown interest in the two projects. A Finance Ministry-appointed expert group's report on structural changes in the classification system had noted that the current system of classification was devised about three decades back. The system was easily applicable in an environment where the maintenance of economic data was mostly manual.

With the advent of information technology and the demand for good governance , the report has called for remodelling the system of classification into one that is Management Information System- (MIS) oriented and also helps evaluate governmental performance.

It added that a multi-dimensional classification structure having four separate segments representing funds, economic categories, functions and programmes could replace the present uni-dimensional system.

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