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A big mistake - Indian Intelligence agencies'' secret service comes under scrutiny of expenditure
Sudhir Chadda
Apr. 5, 2005

In this world of covert war and special operations, efficient intelligence services is essential. But Indian MPs today questioned the same infrastructure. While financial scrutiny and audit is an essential component of any Government Agencies in any country, the intelligence departments need to be immune in a country situated in a subcontinent as volatile as South Asia.

According to media reports, the intelligence agencies, which are always cash rich in the secret funds which is not accounted for nor scrutinized by any authority but the Customs, came under the scrutiny of the Standing Committee of MPs.

The committee that completed the examination of the demands for grants in 2005-06 for the Department of Revenue last week tumbled upon a provision as "secret service expenditure" and pressed for its explanation.

The Department of Revenue had to explain the expenditure that rose from Rs 70.05 lakhs in 2003-04 to Rs 79.80 lakhs in 2004-05 and is proposed to be increased further to Rs 1.16 crores.

In a note to the Standing Committee on Finance, the department has said: "This head is meant for secret service expenditure which is incurred in cultivating informers and on collecting data on intelligence, etc. on duty evasion, smuggling activities, etc."

It says the expenditure is actually for preventing smuggling that takes place from the sea. The budget for the secret service will be going up in the current year since the number of preventive commission rates have been increased consequent to the cadre restructuring and this would require creation of an intelligence network in more sensitive border areas. The Customs are also being provided Rs 35.68 crores for acquiring its own marine fleet of vessels for conducting the preventive operations at the major ports in India. The previous NDA government had, in fact, provided Rs 94.23 crores for the purpose in last year's budget but the funds lapsed as no purchase could be made.

Approval for the acquisition of the vessels has been given only on December 15 and it may take time for actual receipt of the vessels as the process of global tenders has to be followed and that was why only Rs 35.68 crores have been provided in this year's budget and not Rs 94.23 crores estimated earlier, it was explained.


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