Defence Minister Rajnath Singh has hailed the Defence Accounts Department (DAD) as the silent backbone of India’s Armed Forces, crediting it for ensuring financial resilience, resource optimisation, and operational readiness during Operation Sindoor, a decisive victory for the military.
Speaking at the 278th Foundation Day of DAD, the Defence Minister underlined the department’s pivotal role as custodians of the defence budget and as enablers of India’s defence finance system. Chiefs of the Navy and Air Force, senior officials of the Ministry of Defence, DRDO, and retired employees of DAD attended the event.
Defence Minister described DAD as “an invisible bridge connecting finance and the Armed Forces”, emphasising its dual responsibility: strict financial discipline on one hand and ensuring timely operational support on the other.
Celebration took place on October 1, 2025, in New Delhi, marking 278 years since the department’s origins in 1747 with the appointment of the first Military Pay Master.
While the world witnessed the Armed Forces’ courage during Operation Sindoor, the Defence Minister stressed that DAD’s efficient financial management and resource allocation were equally decisive. By ensuring over 50% of the capital budget was utilised by September 2025 and achieving 100% expenditure in the previous year, DAD has demonstrated fiscal prudence alongside operational readiness.
Minister lauded technology-enabled initiatives such as NIDHI 2.0, an upgraded integrated management system for GPF; Gyan Sathi, an AI-powered chatbot for rules and procedures; and the e-Raksha Awaas project. These reforms, he said, showcase DAD’s proactive role in promoting transparency and efficiency under Digital India.
Acknowledging the growing complexity of modern warfare, the Defence Minister urged DAD to act as a financial enabler for defence R&D, supporting initiatives like i-DEX and DRDO projects. He also highlighted DAD’s unique presence from grassroots to headquarters, calling for closer collaboration with the Tri-Services to strengthen jointness and integration.
Minister highlighted reforms in procurement, pointing to the recently launched Defence Procurement Manual 2025 and the ongoing review of the Defence Acquisition Procedure. He also praised CGDA’s Market Intelligence Reports and the Vision Document to transform DAD into a “Centre of Excellence in Defence Finance and Economics.”
The event saw the unveiling of key publications including COSHE-2025, a comprehensive handbook on defence expenditure, and the updated Army Local Audit Manual (ALAM). Awards for Excellence 2025 were also presented to recognise innovation and professionalism within DAD.
Celebrating its 278-year journey, the Defence Accounts Department continues to evolve as a vital knowledge partner to the Ministry of Defence, delivering expertise in audit, pensions, accounting, and financial advice. The Minister concluded by reminding that “every rupee belongs to the people of India,” and balancing fiscal rules with the needs of the Armed Forces remains DAD’s defining strength.
