Rajnath Singh Approves Major Increase in Financial Powers of Defence Commanders to Boost Operational Readiness

New Delhi, June 4: In a major move aimed at strengthening the operational efficiency and decision-making capabilities of the Armed Forces, Defence Minister Rajnath Singh on Thursday approved a comprehensive revision of the Delegation of Financial Powers for the Defence Services, significantly enhancing the spending authority of field commanders.

The revised financial powers, covering defence services, medical establishments and works projects, provide increases of up to 100 percent and, in some cases, more than double the existing limits. The decision is expected to accelerate procurement processes, improve operational preparedness and ensure faster execution of critical defence projects.

Boost to Aatmanirbhar Bharat in Defence

A key highlight of the revised framework is the doubling of financial powers related to indigenisation and Research & Development (R&D) within the military ecosystem.

The move is aimed at promoting the Government’s Aatmanirbhar Bharat initiative in the defence sector by reducing dependence on foreign Original Equipment Manufacturers (OEMs) and encouraging domestic innovation and defence production.

According to the Ministry of Defence, the revised delegation will facilitate procurement worth more than ₹1.25 lakh crore through the revenue route, in line with current budgetary allocations.

Greater Powers for Army, Navy and Air Force Commanders

The Defence Minister has also approved a substantial increase in special financial powers delegated to Army, Navy and Air Force commanders for meeting urgent operational requirements.

The overall financial ceiling available to field commanders has been increased by 100 percent, enabling quicker responses to operational and strategic needs without lengthy approval procedures.

New Provisions for Joint-Service Procurement

To enhance inter-service coordination and efficiency, the revised guidelines introduce new provisions for Joint-Service procurement.

Under the new framework, the Lead Service will be granted higher financial delegation than normal procurement procedures, allowing faster acquisition of equipment and services required jointly by multiple branches of the Armed Forces.

The Ministry has also introduced several new Competent Financial Authorities (CFAs) to decentralize procurement decisions related to goods and services, reducing bureaucratic delays and improving responsiveness.

First Major Revision Since 2021

The last revision of financial powers was notified in 2021. The latest changes were considered necessary due to the expansion of force levels, rising operational requirements, increased sustainment expenditure and higher defence budget allocations.

Officials said the revised financial powers, coupled with the updated Defence Procurement Manual notified in October 2025, will significantly streamline procurement processes and ensure timely availability of critical resources for the Armed Forces.

Senior Defence Leadership Present

The revised financial powers were released in the presence of top defence and government officials, including Chief of Defence Staff General Anil Chauhan, 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 (Defence Finance) Vishvajit Sahay and other senior officers.

The decision is expected to strengthen India’s defence preparedness, improve operational agility and support the country’s long-term goal of self-reliance in defence manufacturing and procurement.