Centre raises spending powers of military chiefs
What's the story
In a major move, the Indian government has increased the financial powers of military commanders and service chiefs. The decision is aimed at speeding up acquisitions and project execution worth over ₹1.25 lakh crore. The revised Delegation of Financial Powers for the Defence Services doubles financial limits in some cases, with an aim to cut procurement delays and boost military readiness.
Power increase
Financial authority of top military commanders increased
The revised framework has increased the financial powers of Army Commanders and their equivalents in the Navy and Air Force to ₹100 crore from ₹30 crore. The financial authority of the Army Chief, Navy Chief, and Air Chief has also been increased to ₹125 crore from ₹75 crore. This is expected to facilitate procurement worth over ₹1.25 lakh crore through the revenue route in this fiscal year.
Operational readiness
Urgent operational needs addressed with special financial powers
The revised framework also significantly enhances special financial powers available to Army, Navy, and Air Force commanders for urgent operational needs. The overall ceiling has been doubled, ensuring that the armed forces can respond quickly to any situation. This move is expected to improve operational preparedness and ensure timely availability of critical equipment and resources for the armed forces.
Indigenisation boost
Boost for indigenous defense manufacturing and R&D
The revised framework doubles financial powers for indigenous procurement and R&D projects, promoting domestic manufacturing and reducing dependence on foreign defense suppliers. It also introduces higher spending limits for joint procurement by a lead service on behalf of the Army, Navy, and Air Force. This is expected to encourage greater integration and efficiency within the armed forces.
Decentralization
Decentralized procurement to streamline processes
The revised framework also introduces several new Competent Financial Authorities to decentralize procurement of goods and services. This is expected to speed up decision-making and streamline procurement processes across the armed forces. The Ministry of Defence said this revision was needed due to expansion in force levels, rising operational expenditure, and increased budgetary allocations since the last revision in 2021.