Defence Secretary Lauds Role of IFAs in Enhancing Defence Financial Systems

Shri Rajesh Kumar Singh underscored that IFAs have become indispensable enablers in promoting transparency and accountability within the defence financial framework.

In a significant step towards strengthening the financial systems within India’s Defence sector, Defence Secretary Shri Rajesh Kumar Singh recently lauded the pivotal role of Integrated Financial Advisors (IFA) during his address at the Integrated Financial Advisors Conference 2025, held from April 03-04, 2025, in the historic city of Hampi, Karnataka. The two-day conference, organized by the Defence Accounts Department (DAD) under the Ministry of Defence (MoD), served as a platform for discussions on improving transparency, accountability, and efficiency within the defence financial system.

Shri Rajesh Kumar Singh underscored that IFAs have become indispensable enablers in promoting transparency and accountability within the defence financial framework. He emphasized the importance of their contributions in improving responsiveness, ensuring proper fund allocation, and reducing inefficiencies across various financial transactions. The Defence Secretary also echoed Raksha Mantri Shri Rajnath Singh’s directive for DAD to evolve into a Centre of Excellence for Defence Finance & Economics, urging the department to integrate research-based policy inputs, cost-benefit analysis in procurement, and AI-driven financial analytics to aid decision-making.

During his speech, Shri Rajesh Kumar Singh highlighted key initiatives and achievements within the Defence Accounts Department. Notably, he mentioned the remarkable 100% capital budget utilization in 2024-25, a first in the last five years. This accomplishment is seen as a milestone in ensuring optimal utilization of resources for national defense needs. He also touched upon Project SAMPURNA (System Automation for Procurement, Payment and Uniform Raksha Accounting), which promises to revolutionize defence financial management by incorporating Artificial Intelligence (AI), Machine Learning (ML), and Data Science technologies to enhance automation and operational efficiency.

The conference featured six focused business sessions, which offered a comprehensive overview of the critical role that financial advisors play in enhancing capital acquisition outcomes. One of the key areas of discussion was the challenges associated with the newly implemented IFA system within the Military Engineer Services (MES) and the possible solutions to address these complexities. The conference also explored the multifaceted challenges related to the Army Commander Special Financial Powers, and the merits and challenges of outsourcing within the defence sector, making it evident that while outsourcing has its benefits, it comes with a unique set of challenges that require careful management.

Shri S.G. Dastidar, the Financial Advisor (Defence Services), addressed the conference in the inaugural session. He emphasized the expanding role of IFAs in light of India's growing defence capabilities and the increasing delegation of financial powers to Service Headquarters and lower levels. Shri Dastidar also emphasized the importance of Aatmanirbharta (self-reliance) in defence procurement, urging the adoption of standardized procedures and better data systems. He advocated for stronger coordination between IFAs and Controller of Defence Accounts (CDAs) to optimize financial efficiency and to ensure seamless processes across the defence financial ecosystem.

Dr. Mayank Sharma, Controller General of Defence Accounts (CGDA), also highlighted the changing dynamics of the IFA role, focusing on the growing need for advanced technological integration in defence finance management. He provided further insight into the advancements brought about by Project SAMPURNA, emphasizing its potential in transforming the operational and financial landscape of the Indian Defence sector.

The event witnessed participation from senior officials from both the Ministry of Defence and Defence Accounts Department, including Principal Integrated Financial Advisors and Integrated Financial Advisors from various parts of the country. The attendees engaged in constructive discussions regarding the modernization of the IFA system, the role of financial advisors in the evolving landscape of defence procurement, and ways to overcome operational hurdles.

The conference underscored the critical role of financial advisors in the success of defense financial operations, promoting effective decision-making and the judicious use of resources. As the defence sector continues to expand, the emphasis on improving financial management systems through technology-driven solutions like Project SAMPURNA stands as a significant step toward realizing greater operational efficiency and effectiveness.

The proceedings of the Integrated Financial Advisors Conference 2025 are expected to guide the future trajectory of defence finance, paving the way for more innovative solutions, streamlined processes, and increased coordination between all stakeholders involved. With the integration of AI, ML, and other advanced technologies, the Indian Defence sector is set to witness a new era of financial management, ensuring that India remains at the forefront of global defense capabilities.