Rajnath Singh calls for integrated defence financial systems, greater digitisation
New Delhi, Oct 2. Defence Minister Rajnath Singh has called for greater integration of the financial systems of the Army, Navy and Air Force, along with wider use of digitisation, automation and real-time data to improve financial management and transparency in the Ministry of Defence.
Addressing the 279th Annual Day celebrations of the Defence Accounts Department (DAD) at DRDO Bhawan in New Delhi on October 1, Singh described the department’s financial audit and management functions as critical to India’s defence preparedness and called for further modernisation of its systems.
Singh urged DAD to move from the traditional “Annual Review of Balances” to an “Any Time Review of Balances”, stressing the need for continuous and real-time monitoring of financial data.
The Defence Minister particularly commended SAKSHAM, the department’s initiative for digitising and integrating the defence accounting and payment ecosystem. Hosted on a secure dedicated data centre and operating through the DAD Wide Area Network, SAKSHAM incorporates role-based access, enhanced validation mechanisms and scalable technology.
The system is intended to support the government’s objective of ‘One Nation, One Function, One Application’ and has now been integrated with the Indian Army Financial Information System (IAFIS), enabling digital exchange of budget, sanction and bill-related information.
The integration is expected to facilitate real-time visibility of bill status and budget balances while enabling completely paperless processing of Army bills.
Singh also highlighted the achievement of nearly 100 percent expenditure during the financial year 2025-26, crediting the joint efforts of DAD and the three Services for the outcome.
Referring to the successful cleaning of data under the System for Pension Administration (Raksha) – SPARSH, he called for further automation of grievance redressal. He suggested the development of a Conversational Artificial Intelligence-based system capable of handling grievances through chat, SMS, WhatsApp, email and telephone.
The Defence Minister also stressed the importance of quality audits, digital data cleaning and speedy resolution of grievances and court cases, particularly those involving the legitimate financial and service-related entitlements of defence personnel and veterans.
“Our approach must be firm, fair, sensitive and responsible, especially when dealing with the legitimate dues and service rights of those who have devoted their lives to defending the nation,” Singh said.
He called for the early implementation of SAMPURNA, an envisaged fully automated, end-to-end revenue procurement system that would use data analytics, artificial intelligence and machine learning to provide decision-support capabilities.
Three major digital initiatives launched
During the event, Singh launched three major initiatives aimed at strengthening the financial information architecture of the armed forces, improving expenditure monitoring and introducing a Treasury Single Account mechanism in the Defence Ministry.
The SAKSHAM-IAFIS integration will allow digital transmission of budget, sanction and bill information between DAD and the Indian Army, further advancing the digitisation of the defence payments ecosystem.
The Defence Minister also inaugurated the Treasury Single Account (TSA) system in the Ministry of Defence. Implemented through the Payment Routing and Integrated System Management (PRISM) platform and integrated with the Reserve Bank of India’s e-Kuber system, TSA will enable just-in-time release of funds to autonomous bodies under the Defence Ministry.
The system is expected to improve grant management and provide greater visibility of financial transactions and expenditure.
Singh also launched the revamped National Compilation System (NCS), which serves as the central system for accounting and compilation of defence expenditure across the country.
The redesigned NCS is based on a new technical architecture and is intended to provide more accurate budget reporting and expenditure monitoring. It will enable granular financial reporting to the Ministry of Finance, Ministry of Defence, Service Headquarters and field controllers, supporting policy formulation and budget management.
Awards for excellence
The Raksha Mantri Awards for Excellence 2026 were also presented during the event to teams and individuals for outstanding contributions to financial reforms and digital transformation within DAD.
The awards recognised innovation, professionalism and efficiency in defence financial management, including the digitisation of the Annual Review of Balances and implementation of initiatives such as SAKSHAM and SAMAR-SETU.
SAMAR-SETU is a centralised system for managing the pay and allowances of Agniveers in the Indian Army. Operated through the Central Agniveer Pay and Accounts Office, the platform manages the pay accounts of more than 2.3 lakh Agniveers through automated, system-driven processes.
Singh also released three publications – the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2026, Raksha Lekha Bharati and the Market Intelligence Report 2025-26. A film highlighting the achievements of SPARSH was also screened.
Controller General of Defence Accounts Alka Nangia Arora outlined the department’s major initiatives during the year, including the centralisation and digitisation of internal audit, payments and accounting, financial advice and defence pension management.
The event was attended by Chief of Defence Staff General NS Raja Subramani, Chief of Naval Staff Admiral Krishna Swaminathan, Chief of Army Staff General Dhiraj Seth, Defence Secretary Rajesh Kumar Singh, Secretary (Defence Finance) Vishvajit Sahay, Secretary (ESW) Sukriti Likhi, Vice Chief of Air Staff Air Marshal Ashutosh Dixit and other senior Ministry of Defence officials.
