New Delhi: Defence Minister Rajnath Singh launched three major digital and financial management initiatives of the Defence Accounts Department (DAD) during its 279th Annual Day celebration at DRDO Bhawan in New Delhi on October 1.
The initiatives include the integration of SAKSHAM with the Indian Army Financial Information System (IAFIS), the Treasury Single Account (TSA) system in the Ministry of Defence and a revamped National Compilation System (NCS) for tracking and reporting defence expenditure.
The initiatives are aimed at improving financial information sharing, strengthening expenditure monitoring and moving defence financial processes further towards digitisation and automation.
Rajnath Singh Calls for Maximum Digitisation
Addressing the DAD Annual Day event, Rajnath Singh called for greater integration of the financial systems of the Army, Navy and Air Force.
He stressed the need for maximum digitisation, maximum automation and maximum transparency, along with real-time updating of Management Information System data.
The Raksha Mantri also called for a shift from the traditional “Annual Review of Balances” to “Any Time Review of Balances”, allowing financial information to be reviewed through real-time data instead of waiting for periodic assessments.
The approach is intended to support faster and better-informed decisions on defence budgets and expenditure.
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SAKSHAM and Army Finance System Integrated
One of the key developments launched at the event is the integration of DAD’s SAKSHAM bill audit and payment system with the Indian Army Financial Information System (IAFIS).
The integration enables digital transmission of budget, sanction and bill information between the two systems.
It will allow real-time sharing of information related to bill status and budget balances and support completely paperless processing of bills.
SAKSHAM is DAD’s project for digitising and integrating the defence accounting and payment ecosystem. It operates through a secure dedicated data centre and the DAD Wide Area Network.
The system uses role-based access, enhanced validations and scalable technology. Its integration with IAFIS also supports the broader objective of “One Nation, One Function, One Application” in defence financial management.
Treasury Single Account System for Defence Ministry
The Raksha Mantri also inaugurated the Treasury Single Account system in the Ministry of Defence.
The TSA system is designed to enable Just-In-Time release of funds to autonomous bodies under the Government of India.
It has been operationalised through the Payment Routing and Integrated System Management (PRISM) platform and integrated with the Reserve Bank of India’s eKUBER system.
The system is expected to improve grant management for autonomous bodies under the Ministry of Defence while providing greater visibility of accounting and expenditure.
This can help strengthen monitoring of government funds and improve the flow of financial information.
Revamped National Compilation System
The third major initiative launched at the event was the revamped National Compilation System (NCS) for Defence.
The NCS serves as the single source for accounting and compilation of defence expenditure across India.
The Ministry of Defence follows a financial delegation framework that requires budget allocation and expenditure tracking through various Controllers of the Defence Accounts Department located across the country.
The revamped NCS has been redesigned using a new technical architecture to provide more accurate budget reporting and expenditure monitoring.
It will also support granular reporting for the Ministry of Finance, Ministry of Defence, Service Headquarters and field controllers, helping improve policy planning and budget management.
Push for AI-Based Grievance Redressal
Rajnath Singh also highlighted the use of technology in addressing grievances related to defence pensions and other financial matters.
Referring to the success of SPARSH data cleaning, he suggested an automated grievance-redressal system based on Conversational AI.
The proposed ecosystem could cover multiple communication channels, including chat, SMS, WhatsApp, email and phone calls.
He also stressed the importance of quality audits, digital data cleaning and timely resolution of grievances and court cases.
The Raksha Mantri underlined that financial administration must remain sensitive to the legitimate dues and service rights of personnel who have served in defence of the country.
SAMPURNA and Automated Revenue Procurement
Singh also called for the early implementation of SAMPURNA, a proposed fully automated, end-to-end revenue procurement system.
The system is envisaged to use data analytics, Artificial Intelligence and Machine Learning to provide decision-support capabilities.
The proposed technology-driven approach is aimed at strengthening procurement-related financial processes and enabling more informed decisions through data.
Near 100% Expenditure in FY 2025–26
During the event, Rajnath Singh also highlighted the near-100% expenditure achieved during FY 2025–26, crediting the Defence Accounts Department and the three Services for their joint efforts.
He linked effective financial management with the broader functioning of defence preparedness.
The emphasis on real-time data, integrated financial systems and digital monitoring is intended to give defence authorities better visibility over budgets, approvals, payments and expenditure.
SAMAR-SETU Manages 2.3 Lakh Agniveer Accounts
The event also highlighted the role of SAMAR-SETU, a centralised application for managing the pay and allowances of Agniveers in the Indian Army.
Operating through the Central Agniveer Pay and Accounts Office, the system manages the pay accounts of more than 2.3 lakh Agniveers through automated, system-driven processes.
DAD officials were also recognised for their contribution to the digitisation of the Annual Review of Balances and implementation of initiatives including SAKSHAM and SAMAR-SETU.
Awards and Publications Released
The Raksha Mantri Awards for Excellence 2026 were presented to teams and individuals for achievements in reforms and projects related to defence financial management.
The awards recognised innovation, professionalism and efficiency, as well as contributions towards greater transparency and institutional capacity.
Three publications were also released: the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2026, Raksha Lekha Bharati and the Market Intelligence Report 2025–2026.
A film showcasing the work of SPARSH, the System for Pension Administration (Raksha), was also screened.
Defence Accounts Department Marks 279 Years
The Defence Accounts Department traces its origins to the appointment of the Military Pay Master in 1747 and has evolved alongside the changing requirements of the Defence Forces and Ministry of Defence.
Its responsibilities include internal audit, accounting, financial advice and management of defence pensions.
At the Annual Day event, Controller General of Defence Accounts Alka Nangia Arora highlighted the department’s ongoing work to centralise and digitise these core functions.
The event was attended by Chief of Defence Staff General N. S. Raja Subramani, Chief of Naval Staff Admiral Krishna Swaminathan, Chief of Army Staff General Dhiraj Seth, Defence Secretary Rajesh Kumar Singh, Secretary (Defence Finance) Vishvajit Sahay and Vice Chief of Air Staff Air Marshal Ashutosh Dixit, among other senior officials.
The latest initiatives mark another step towards a more integrated digital financial architecture for defence, with the focus shifting from periodic reporting to real-time information, paperless processing, automated systems and greater visibility of public expenditure.
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