Defence Minister Rajnath Singh on Wednesday lauded the Defence Accounts Department (DAD) for its pivotal role in sustaining the operational readiness of the Armed Forces through financial discipline, efficient resource utilisation, and adoption of modern technology. He was speaking at the celebrations of the department’s 278th Foundation Day in New Delhi.
Recalling the decisive victory during Operation Sindoor, the Minister said that while the world witnessed the valour of India’s soldiers, the “silent yet crucial role” of DAD ensured financial resilience and war preparedness. “Behind the valour of our soldiers lies your silent but decisive contribution,” he noted.
Singh commended DAD’s performance, noting that as of September 30, 2025, 50% of the capital budget expenditure had already been booked. He also congratulated the department for achieving 100% utilisation in the last financial year, describing it as a reflection of efficiency and transparency.
“The DAD is not just an accounting organisation; it is an enabler that ensures the smooth functioning of the nation’s economic cycle,” he said, adding that financial discipline is as critical to national strength as military might.
Under the Digital India initiative, DAD has launched several technology-driven reforms. These include NIDHI 2.0, an upgraded integrated management system for General Provident Fund subscriptions covering 1.7 lakh employees; Gyan Sathi, an AI chatbot providing instant access to rules and procedures; and e-Raksha Awaas and TULIP 2.0 projects to streamline defence financial processes.
“These reforms underline India’s determination to build a digitally empowered defence finance system,” Singh remarked.
The Defence Minister urged DAD to play a proactive role in enabling defence research and development (R&D) investments while ensuring budgetary discipline. He linked this to initiatives like i-DEX, the Technology Development Fund, and DRDO projects, which are driving innovation in defence technologies.
He also called on the department to act as a financial enabler of Tri-Services integration, saying, “You are one of the few institutions with a presence from grassroots units to the headquarters of all three Services. Work closely with them to promote synergy through financial processes.”
Highlighting the need for speed and efficiency in defence procurement, Singh referred to the recently launched Defence Procurement Manual 2025 for revenue procurement and the ongoing review of the Defence Acquisition Procedure (DAP) for capital procurement.
He praised initiatives such as Market Intelligence Reports to assess the impact of defence expenditure through Government e-Marketplace (GeM) and directed the Controller General of Defence Accounts (CGDA) to prepare an action plan to make DAD a “Centre of Excellence in Defence Finance and Economics.”
At the ceremony, Rajnath Singh unveiled Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2025; Updated Army Local Audit Manual (ALAM); and Digital platforms NIDHI 2.0 and Gyan Sathi.
Raksha Mantri Awards for Excellence 2025 were also presented to teams and individuals for outstanding achievements in defence financial management.
Tracing its origins to 1747 with the appointment of the Military Pay Master, the DAD has evolved into the financial backbone of the Indian Armed Forces, providing services in audit, payment, pensions, financial advice, and defence economics.
The event was attended by Chief of the Naval Staff Admiral Dinesh K Tripathi, Air Chief Marshal A.P. Singh, Defence Secretary Rajesh Kumar Singh, DRDO Chairman Dr. Samir V. Kamat, CGDA Raj Kumar Arora, and other senior officials and veterans of the department.
