The Defense Secretary unveiled revised financial powers for the armed forces to strengthen operational autonomy

The revised financial powers, together with the updated Defense Procurement Manual announced in October 2025, are expected to streamline procurement processes, speed up decision-making and ensure timely availability of resources to the armed forces. Photo: Ministry of Defense

Defense Minister Rajnath Singh on Thursday (June 4, 2026) revised the financial powers of the defense forces through a framework for delegation of financial powers for defense services, including medical and construction projects. The aim of this move is to increase operational efficiency, accelerate procurement and strengthen self-sufficiency in the defense sector.

According to the Ministry of Defence, financial powers have been boosted by up to 100%, in some cases more than double. The move is expected to empower field commanders with greater decision-making authority, allowing for faster contracting and timely implementation of projects.

The ministry said funding powers related to indigenization and research and development within the military ecosystem have been doubled to support the government’s Aatmanirbhar Bharat initiative and reduce dependence on foreign original equipment manufacturers (OEMs). The revised framework is expected to facilitate award of contracts worth more than ₹ 1.25 lakh crore through the revenue route in line with the current year’s budget allocations.

Urgent operational requirements

Special financial powers delegated to the Chiefs of the Army, Navy and Air Force were also significantly enhanced, including a 100% increase in the overall ceiling to meet urgent operational requirements. The revised provisions further encourage joint procurement by the lead service with higher financial delegation than under the normal procurement process.

To further decentralize decision-making, several new relevant finance offices have been introduced to enable faster procurement of goods and services across the armed forces, he added.

The last revision of financial powers was announced in 2021. The ministry said the latest update was necessitated by the expansion of force levels, increased operational expenditure and higher nutrition requirements, along with increased budget allocations.

Officials noted that the revised financial powers, along with the updated Defense Procurement Manual announced in October 2025, are expected to streamline procurement processes, speed up decision-making and ensure timely availability of resources to the armed forces.

Senior defense officials were present when the revised delegation framework was released.

Published – 04 Jun 2026 20:56 IST