"All the stories of CBI, CVC or CAG etc etc causing a policy paralysis is a bogey. It's total alibi for non-performance," Rai said at an event here.
"There is no reason why they (bureaucrats) should not deliver given space, given the empowerment. They have ability to do so given the confidence that yes go ahead and perform," he said.
Former Finance Minister P. Chidambaram had came down heavily on investigating agencies and CAG for "overstepping" their limits by attempting to convert bonafide executive decisions into either crimes or abuse of authority.
"Unfortunately, there are a number of cases where investigating agencies and other authorities like Comptroller and Auditor General, have overstepped their limits and attempted to convert bonafide executive decisions into either crime of abuse of authority," he had said.
Praising Narendra Modi administrative skills, Rai said: "Now, story that emerges is here is the administration which is willing to provide that space.
"Long term economic growth whatever, wherever it may be cannot be sustainable unless it is nurtured through governance".
After taking over as Prime Minister Modi assured the bureaucracy of protection against malicious prosecution for bona fide decisions.
He assured secretaries to the government to approach him or mail him directly with inputs and ideas on any issue for deciding matters quickly.