Rajnath Singh bats for strong defense finance system
1 min read . Updated: 12 Apr 2023, 04:59 PM IST
Premium- The minister advocated for competitive bidding through open tender in defense procurement, stating that exceptions to this rule should remain rare
New Delhi: Defense minister Rajnath Singh Wednesday highlighted the importance of a robust defense finance system as the foundation of a strong military.
Singh also emphasized the need for innovative methods to maximize the value of money spent on national security, adding that a legal and procedural defense-finance framework is vital to prudent management of defense expenditure. He was speaking at an international conference on Defence Finance & Economics the national capital
The minister advocated for competitive bidding through open tender in defense procurement, stating that exceptions to this rule should remain rare.
"In the case of procurement of defence platforms/equipment, either under capital or revenue route, the gold standard of Open Tender should be adopted to the extent possible. A competitive bid based procurement process, which is open to all, is the best possible way to realise the full value of the public money being spent. There would be some rare cases when it may not be possible to go for an open tender process. Such instances should come under exceptions and exceptions should not become the rule," Singh said.
Singh also underscored the significance of comprehensive blue books, which codify rules and procedures for defense equipment procurement, and the role of expert financial advice in day-to-day financial matters.
He argued that the separation of defense finance functions from core defense organizations reduces the chances of corruption and waste, generating public trust and potentially leading to increased funding. Singh noted that in India, the Defence Accounts Department, led by the Financial Advisor (Defence Services), capably manages defense finance and economics.