Anand,
I tried earlier in this discussion to respond to well known but frustrating designing and management financial programs in India. I am glad that you have taken on the task, with your knowledge of both the subject and the country. I have been thinking about whether the types of problems and barriers may be addressed by a radical approach (not just in India). In précis, it is making use of the technology that can convey realities of performance and results essentially immediately. Health delivery may be observed in any part of the country to any other part, the effect of floods similarly including projecting the likely consequence on roads, disease and loss of agricultural production. The list is, as you know, of much of meaningful performance in almost all spheres public services is substantial and can be made transparent. There are, of course, cultural differences that would determine responding, interpretation and reaction (Francis Fukuyama...) but opening these gates may (most likely?) open the society as a whole, to changes, hopefully, more in positive directions, rather crashing into the same walls.
If this approach seems useful to your direction, please let me know.
Fitz.