Rajnath seeks big changes in Department of Defence Accounts
Union Defence Minister Rajnath Singh holds a Defence Accounts Code 2025 book for the DAD during the inauguration of Controllers’ Conference 2025 hosted by DAD, at the Dr SK Kothari Auditorium, DRDO Bhawan in New Delhi. Chief of Defence Staff General Anil Chauhan and Chief of the Naval Staff Admiral Dinesh K Tripathi also present.
| Photo Credit:
ANI
Defence Minister Rajnath Singh on Monday sought major reforms in the Department of Defence Accounts (DADs) and asked them to focus on making swift error-free decisions, adopt transparent systems and become a “facilitator” rather than a “controller” of State funds.
Singh’s advocacy for all-round change in the DAD’s functioning is line with the Ministry of Defence declaring 2025 as the year of reform.
Addressing the Controllers’ Conference of the Defence Accounts Department, Singh also said that defence budgets are no longer just a part of the national economy, they are “growth drivers”. He urged the DAD to incorporate defence economics in their planning and assessments, including social impact analysis of R&D projects and dual-use technologies.
“The world is looking at our defence sector with new respect. A single delay or error in financial processes can directly affect operational preparedness,” he said.
Singh emphasised on the Department’s critical role in strengthening the operational readiness and financial agility of the armed forces.
“Our effort is to ensure that decisions are taken swiftly so that we can begin manufacturing larger engines right here in India and that this journey begins with the hands of Indians,” he narrated. At the same time, the Minister reaffirmed the government’s commitment to building advanced indigenous defence manufacturing capabilities.
Internal reform
The Defence Minister encouraged the DAD to enable smooth implementation and timely funding of military projects, particularly from start-ups, MSMEs, and the private sector.
He urged officials to undertake internal reform through self-introspection, rather than relying solely on external audits or consultants. “Improvements made through internal evaluation create living organisations. These reforms are more organic, with fewer barriers,” Singh stated.
He highlighted that for the first time, the Defence Acquisition Council has approved the acquisition of weapon systems through the capital route, and urged the Department to be prepared for financial activities related to this shift.
The Minister drew people’s attention towards the transformation in public procurement through Government e-Marketplace (GeM), which has facilitated transparency and private sector engagement. The MoD, according to him, has procured goods and services worth over ₹2 lakh crore through GeM till FY24-25, and called upon Integrated Financial Advisors (IFAs) and Competent Financial Authorities (CFAs) to maximise its use to ensure transparency and efficiency.
He welcomed the Department’s work on the vision document and roadmap for defence finance & economics but recommended it to move towards faceless and time-bound payment systems to encourage increased participation from private players in defence manufacturing.
Published on July 7, 2025
