Intro
The government has expanded financial powers for defence forces, enabling faster procurement, improved operational readiness and efficiency
New Delhi
The Centre has significantly enhanced the financial powers of the armed forces, a move aimed at accelerating defence procurement, improving operational efficiency and strengthening military readiness. The revised framework is expected to facilitate procurement worth over Rs 1.25 lakh crore through the revenue route, aligning with current defence budget allocations.
Defence Minister Rajnath Singh unveiled the revised Delegation of Financial Powers for the Defence Services in New Delhi on Thursday. The updated structure covers procurement, medical services and works projects, while introducing measures designed to speed up decision-making and project execution across the military.
Under the revised norms, financial powers delegated to various authorities within the armed forces have been increased by up to 100 per cent and, in some cases, more than doubled. The enhancement is expected to provide field commanders with greater autonomy to address operational requirements and conclude contracts more quickly.
The Ministry of Defence stated that the changes would strengthen operational effectiveness by reducing procedural delays and enabling faster implementation of critical projects. The move is particularly significant as the armed forces continue to modernize capabilities amid evolving security challenges.
A major feature of the revised framework is the substantial increase in financial authority for indigenization initiatives and research and development activities. These powers have been doubled to support the government’s Aatmanirbhar Bharat vision in defence manufacturing and reduce dependence on foreign original equipment manufacturers.
The government has also increased the financial ceiling for urgent operational requirements by 100 per cent. Enhanced special financial powers have been granted to Army, Air Force and Navy commanders, enabling quicker responses to emerging operational needs.
In another important reform, new provisions have been introduced to encourage joint-service procurement. Lead services will now be able to undertake purchases with higher delegated authority, promoting efficiency and better coordination among the three armed forces.
According to the Defence Ministry, the previous financial powers framework was notified in 2021. The latest revision was considered necessary due to expanding force requirements, rising operational expenditure and increased defence budget allocations, ensuring that procurement and sustenance activities keep pace with evolving military demands.