Rajnath Singh Calls for Maximum Digitisation, Automation and Transparency in Defence Financial Management

New Delhi, Oct 1 : Defence Minister Rajnath Singh on Thursday called for “maximum digitisation, maximum automation and maximum transparency” in defence financial management, stressing the need to integrate the financial systems of the three Services for real-time monitoring and informed decision-making.

Addressing the 279th Annual Day celebration of the Defence Accounts Department (DAD) at DRDO Bhawan here, Singh called for a shift from the traditional “annual review” of defence finances to an “any time review” system, enabled by real-time data on budgetary balances and expenditure.

He emphasised greater transparency, quality audit, digital data cleaning and prompt resolution of grievances and court cases, particularly those involving 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.

The Defence Minister commended SAKSHAM, the DAD’s digital bill audit and payment system, for integrating and digitising the defence accounting and payment ecosystem. He said its integration with the Indian Army Financial Information System (IAFIS) marked an important step towards the broader objective of “One Nation, One Function, One Application”.

Singh also appreciated the joint efforts of the DAD and the three Services in achieving nearly 100 per cent expenditure during 2025-26.

Referring to data-cleaning efforts under the System for Pension Administration (Raksha), SPARSH, he suggested automating grievance redressal through a Conversational AI ecosystem covering chat, SMS, WhatsApp, email and telephone calls.

He also stressed the early implementation of SAMPURNA, a fully automated end-to-end revenue procurement system envisaged to use data analytics, Artificial Intelligence and Machine Learning as decision-support tools.

During the event, Singh unveiled three major initiatives aimed at strengthening financial information systems across the Defence Forces, improving accounting and monitoring of defence expenditure, and operationalising the Treasury Single Account (TSA) system in the Ministry of Defence.

The integration of SAKSHAM with IAFIS will enable digital transmission of budget, sanction and bill information between the DAD and the Army’s financial information system. It will facilitate real-time sharing of bill status and budget balances and enable completely paperless processing of bills.

The TSA system, inaugurated by Singh, is aimed at enabling Just-In-Time release of funds to autonomous bodies under the government. Operationalised through the Payment Routing and Integrated System Management (PRISM) platform and integrated with RBI eKUBER, the system is expected to improve grant management and provide greater visibility of accounting and expenditure.

Singh also launched the revamped National Compilation System (NCS) for Defence, the single source for accounting and compilation of defence expenditure in the country. Redesigned on a new technical architecture, the NCS is intended to provide more accurate budget reporting and expenditure monitoring.

The system will facilitate granular reporting to the Ministry of Finance, Ministry of Defence, Service Headquarters and field Controllers, supporting policy planning and budget management.

The Raksha Mantri Awards for Excellence 2026 were also presented during the event to recognise teams and individuals for outstanding work in implementing reforms and projects in defence financial management. The awards recognised DAD personnel for digitising the Annual Review of Balances (ARoB) and implementing initiatives including SAKSHAM and SAMAR-SETU.

Singh also released three publications — Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2026, Raksha Lekha Bharati and Market Intelligence Report 2025-26. A film highlighting the achievements of SPARSH was also screened.