Rajnath Singh hails Defence Accounts Department as backbone of armed forces on 278th Foundation Day
New Delhi, October 1. Defence Minister Rajnath Singh lauded the Defence Accounts Department (DAD) for its “silent yet decisive” contribution to India’s military preparedness, describing it as the financial backbone of the Armed Forces.
Speaking at the 278th Foundation Day celebrations of the DAD in New Delhi on October 1, he said that while the world recognised the armed forces’ valour during Operation Sindoor, it was the department’s efficient financial management and resource allocation that enabled operational success.
“The DAD is not just an accounting body, but an enabler that ensures the smooth functioning of the defence ecosystem. It acts as the invisible bridge between finance and the Armed Forces. Behind the valour of our soldiers lies your contribution,” Rajnath Singh remarked.
Strong financial discipline
Highlighting the centrality of finance in governance, the Defence Minister stressed that a nation’s strength rests on its financial foundations. He praised the DAD for achieving full utilisation of the defence budget in the last financial year and for already booking 50 percent of the capital expenditure by September 2025.
“This demonstrates efficiency, transparency, and commitment,” he said.
Tech-driven reforms
Applauding the department’s adoption of digital tools, Rajnath Singh cited key initiatives such as the upgraded NIDHI 2.0 platform, the TULIP 2.0 system under transition, and the launch of the AI-powered chatbot Gyan Sathi. He also praised the success of the e-Raksha Awaas housing project, calling these reforms “a testimony to DAD’s proactive spirit under Digital India.”
Facilitating R&D in defence
With modern warfare increasingly shaped by emerging technologies, Rajnath Singh called on the DAD to play an active role in supporting research and development investments. Citing initiatives like i-DEX and the Technology Development Fund, he urged the department to “act as custodians of defence finance while enabling innovation for future capabilities”.
Promoting jointness
The Defence Minister also underlined the government’s push for greater integration among the Army, Navy, and Air Force. He said the DAD, with its presence across all service levels, should act as a financial enabler for joint operations.
“You must explore ways to strengthen tri-service synergy through financial processes,” he said.
Procurement and planning
On procurement reforms, Rajnath Singh noted the launch of the new Defence Procurement Manual 2025 to streamline revenue purchases and boost self-reliance. He said that the ongoing review of the Defence Acquisition Procedure would further strengthen capital procurement. Singh also commended the release of Market Intelligence Reports by the Controller General of Defence Accounts (CGDA) to assess the economic impact of defence expenditure.
He recalled unveiling the Vision Document at the recent Controller’s Conference, aimed at transforming the DAD into a ‘Centre of Excellence in Defence Finance and Economics’. He directed the CGDA to prepare a comprehensive action plan, including sectoral reports for possible inclusion in India’s Economic Survey.
Balancing rules and readiness
Rajnath Singh reminded the department of its dual responsibility – to uphold strict financial discipline and simultaneously ensure timely availability of resources for the armed forces.
“At times, these may appear contradictory, but with the right approach, they complement each other. This balance is essential for national security,” he observed.
New publications and digital tools launched
To mark the occasion, the Defence Minister released several publications and platforms, including the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2025, the updated Army Local Audit Manual (ALAM), and digital platforms like NIDHI 2.0 and Gyan Sathi.
COSHE 2025 provides detailed analysis and comparisons of India’s defence expenditure in national and global contexts.
ALAM updates audit procedures for Army units, reinforcing accountability.
NIDHI 2.0 enhances financial management for over 1.7 lakh employees with real-time features.
Gyan Sathi uses AI to deliver instant guidance on defence finance rules.
Recognising excellence
Rajnath Singh also presented the Raksha Mantri Awards for Excellence 2025 to teams and individuals who demonstrated innovation and efficiency in financial management.
Historic legacy
Tracing its roots to the appointment of the Military Pay Master in 1747, the DAD has evolved into a key institution supporting the armed forces through internal audit, accounting, pensions, and financial advice.
“For 278 years, DAD has upheld its responsibility as the guardian of defence finance, serving as both a backbone and a knowledge partner,” Rajnath Singh said.
The ceremony was attended by Chief of the Naval Staff Admiral Dinesh K Tripathi, Air Chief Marshal AP Singh, Defence Secretary Rajesh Kumar Singh, DRDO Chairman Samir V Kamat, senior Defence Ministry officials, and veterans of the DAD.
