Defence Accounts Department ensured efficient resource utilisation, financial management during Op Sindoor: Rajnath Singh
(source : ANI) ( Photo Credit : ani)
Defence Minister Rajnath Singh praised the Defence Accounts Department (DAD) for its key role in India’s military successes, including Operation Sindoor. Speaking at the department’s 278th Foundation Day event in New Delhi on Wednesday, Singh spotlighted how DAD handled efficient resource use, smart financial management, and strong war preparedness during the conflict.
“The world saw the bravery of our Armed Forces in Operation Sindoor, but DAD played a quiet yet vital part behind the scenes,” Singh said. He called DAD the financial backbone of the India Armed Forces, noting how it promotes fiscal discipline, transparency, and quick access to resources for troops.
Singh stressed that finance acts as the lifeblood of national governance and defence. “A nation’s strength shows in its solid financial base, and steady funding keeps our defence machinery running smoothly,” he added.
He highlighted DAD’s strong budget performance, with 50% of the capital budget already spent by September 30, 2025. Last year, the department hit 100% utilization, and Singh is confident it’ll keep that pace this year.
Turning to technology, Singh applauded DAD’s push under the Digital India initiative. Key wins include the e-Raksha Awaas project, upgrading NIDHI 1.0 to the more advanced NIDHI 2.0, and shifting to TULIP 2.0 for faster financial processes. He also praised the homegrown AI chatbot Gyan Sathi, which delivers quick, reliable info on rules and procedures.
“These steps show DAD’s drive for efficiency and openness, helping build a digital defence finance system in India,” Singh said.
With modern warfare relying on tech surprises from years of research and development (R&D), Singh urged more focus on defence R&D. He pointed to government efforts like i-DEX, the Technology Development Fund, and DRDO projects. “DAD must support R&D funding while sticking to budget rules—it’s crucial for our Armed Forces’ future strength,” he emphasized.
Singh also called on DAD to boost jointness and integration across the Army, Navy, and Air Force. “You touch every level, from the ground up to headquarters. Work closely with the services to advance this through finance, and it’ll strengthen our Tri-Services teamwork.”
On defence procurement, he pushed for faster processes in revenue and capital spending. The new Defence Procurement Manual 2025 speeds up buys and supports self-reliance, while updates to the Defence Acquisition Procedure (DAP) will streamline big-ticket items.
He commended DAD’s Market Intelligence Reports through GeM (Government e-Marketplace), which track defence spending’s economic impact for better planning. Singh also released a Vision Document at the event, aiming to turn DAD into a Centre of Excellence in defence finance and economics. He tasked the Controller General of Defence Accounts (CGDA) with an action plan, including reports for India’s Economic Survey.
Balancing strict financial rules with the needs of the Armed Forces is key, Singh noted. “Every rupee comes from India’s people, so follow the rules. But also ensure our forces stay ready— these goals support each other with the right approach, vital for national security.”
During the event, Singh launched major tools to modernize DAD’s financial and audit work. These include the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2025, packed with tables and graphs comparing India’s defence budget to global ones. The updated Army Local Audit Manual (ALAM) guides audits for Army units on stores and cash, boosting accountability.
NIDHI 2.0 streamlines General Provident Fund for over 1.7 lakh employees with real-time updates, audit tracking, and automated processing. Gyan Sathi uses AI to pull instant answers from DAD’s manuals and rules.
Raksha Mantri Awards for Excellence 2025 honored top teams and individuals for reforms, innovation, and efficiency in defence financial management.
DAD, marking 278 years, started in 1747 with a Military Pay Master and has grown to handle audits, payments, accounting, advice, and pensions for the India Armed Forces. It also advises the Ministry of Defence on finance and economics.
Chief of Naval Staff Admiral Dinesh K Tripathi, Chief of Air Staff Air Chief Marshal AP Singh, Defence Secretary Rajesh Kumar Singh, DDR&D Secretary and DRDO Chairman Samir V Kamat, Financial Advisor Mayank Sharma, CGDA Raj Kumar Arora, and other Ministry of Defence officials attended, along with retired DAD staff.
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