Defence Accounts Department Marks 278th Foundation Day with Digital Finance Reforms
SDG 16: Peace, Justice & Strong Institutions | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Defence
The Defence Accounts Department (DAD) celebrated its 278th Foundation Day with announcements highlighting its evolving role as more than an accounting agency - positioning itself as a financial enabler for the Armed Forces. Defence Minister Rajnath Singh commended DAD for achieving 100% utilisation of the capital budget in FY 2024–25 and noted that by September 30, 2025, 50% of this year’s capital allocation had already been booked.
New digital initiatives were launched, including NIDHI 2.0, TULIP 2.0, and an AI chatbot called “Gyan Sathi” to streamline financial processes and improve accessibility of rules and procedures. The event also highlighted the upcoming Defence Procurement Manual 2025 and review of the Defence Acquisition Procedure (DAP) to improve efficiency and transparency in procurement. The release of the Comprehensive Statistical Handbook on Defence Expenditure (COSHE 2025) underlined a shift towards evidence-based planning.
These reforms reinforce India’s defence modernisation agenda by strengthening fiscal discipline, enabling faster capital procurement, and embedding digital public finance systems in defence. As India seeks greater indigenisation and jointness across services, a modernised DAD is critical to aligning resources with strategic goals.
What is the Defence Accounts Department? → An organisation under the Ministry of Defence that manages budgeting, payments, pensions, and accounting for the Armed Forces. It ensures fiscal discipline and timely flow of funds to sustain defence operations.
What is COSHE 2025? → The Comprehensive Statistical Handbook on Defence Expenditure (COSHE 2025) is a data-driven publication of the Defence Accounts Department. It compiles detailed statistics on India’s defence spending — from capital outlay and revenue expenditure to pensions and procurement trends. By centralising reliable financial data, COSHE supports evidence-based defence planning, transparency, and policy analysis, helping align resources with India’s modernisation and indigenisation goals.
Relevant Question for Policy Stakeholders: How can digital reforms in defence finance ensure faster procurement and at the same time safeguard accountability in large-scale defence expenditure?
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