In a significant move aimed at enhancing operational readiness and accelerating procurement processes, Defence Minister Rajnath Singh today approved a comprehensive revision of the Delegation of Financial Powers for the Armed Forces. The revised framework covers defence services, medical establishments, and works projects, with financial ceilings increased by up to 100 percent and, in certain categories, more than doubled.
The enhanced powers are expected to strengthen the operational efficiency of field commanders by enabling faster decision-making, expediting contract finalisation, and ensuring timely execution of critical projects.
A major highlight of the revision is the doubling of financial powers related to indigenisation and research and development initiatives within the military ecosystem. The move is designed to further the Government’s vision of Aatmanirbhar Bharat in defence by reducing reliance on foreign Original Equipment Manufacturers (OEMs) and encouraging indigenous capability development.
According to the Ministry of Defence, the revised financial delegation will facilitate procurement worth over ₹1.25 lakh crore through the revenue route, in line with current budgetary allocations.
Special financial powers granted to Army, Navy, and Air Force commanders have also been substantially enhanced. The overall ceiling for urgent operational requirements has been increased by 100 percent, enabling commanders to respond more effectively to evolving security challenges.
The revised framework additionally introduces new provisions to encourage joint-service procurement through a designated Lead Service. Such procurements will enjoy higher delegated financial authority compared to normal procurement procedures, promoting greater inter-service synergy and efficiency.
To further streamline acquisition processes, several new Competent Financial Authorities (CFAs) have been created, decentralising the procurement of goods and services across the defence establishment.
The last revision of financial powers was notified in 2021. The latest update was necessitated by the expansion of force levels, rising operational and sustenance costs, and increased budgetary allocations. Defence officials noted that the revised financial powers, coupled with the updated Defence Procurement Manual issued in October 2025, will significantly boost defence procurement and facilitate faster decision-making.
The reforms are expected to ensure the timely availability of equipment, infrastructure, and resources required by the Armed Forces to maintain operational preparedness.
The event was attended by Chief of Defence Staff General NS Raja Subramani, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Rajesh Kumar Singh, Secretary (Defence Production) Sanjeev Kumar, Secretary (Ex-Servicemen Welfare) Sukriti Likhi, Secretary (Defence Finance) Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Nagesh Kapoor, Controller General of Defence Accounts Anugraha Narayana Das, and other senior officials.
