New Delhi: Defense Minister Rajnath Singh on Wednesday highlighted the importance of a strong defense finance system as the foundation of a strong military.
Singh also stressed on the need for innovative ways to maximize the value of money spent on national defence, adding that a legal and procedural defence-finance framework is important for judicious management of defense expenditure. He was speaking at an international conference on defense finance and economics in the national capital
Advocating for competitive bidding through open tender in defense procurement, the minister said exceptions to this rule should be rare.
“In the matter of procurement of defense platforms/equipment, either under capital or revenue route, the gold standard of open tender should be adopted to the extent possible. Competitive bidding based procurement process, which is open to all, is the best possible. way to realize the full value of the public money being spent. There would be some rare cases when it would not be possible to go for an open tender process. Such instances should come under exception and exceptions should not become the rule,” Singh said.
Singh also underlined the importance of comprehensive Blue Books, which codify rules and procedures for procurement of defense equipment, and the role of expert financial advice in day-to-day financial matters.
They argued that separating defense finance functions from the main defense organizations would reduce the potential for corruption and waste, build public confidence and potentially increase funding. Singh said that in India, the Defense Accounts Department, headed by the Financial Adviser (Defence Services), manages defense finance and economics efficiently.
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