The 15th Finance Commission has recommended the creation of a non-lapsable fund in the public accounts for capital outlay and defence modernisation as well as possible financial options for constituting this fund. The Commission also mentioned the need to progressively reduce revenue expenditure and enhance capital outlays expenditure besides making suggestions on mitigating the impact of the rising pension bills in the defence, said its chairman N.K. Singh on Wednesday.
Addressing the Higher Defence Management Course at College of Defence Management, Secunderabad, virtually on “Modernisation Fund for Defence and Internal Security: Challenges for Armed Forces”, he said the government has accepted in-principle, the creation of non-lapsable fund for defence and as the pandemic and fiscal pressures abet, this recommendation could be given operational content by determining the financing options and modules.
Later, in an interactive session, Mr. Singh said security and development must go hand-in-hand as investors, both domestic and foreign, look to risk perceptions and want to be assured that their investment destinations are safe given the fast-changing geopolitical global context. CDM Commandant Air Vice-Marshal Pawan Mohey also spoke, a press release said.
