Defence Minister unveils revised financial powers for armed forces to boost operational autonomy

Defence Minister Rajnath Singh on Thursday (June 4, 2026) revised the financial powers of the defence forces by altering the framework for the Delegation of Financial Powers for Defence Services, including for medical and works projects. The move aims to enhance operational efficiency, accelerate procurement, and strengthen self-reliance in the defence sector.

According to the Ministry of Defence, financial powers have been enhanced by up to 100%, and in certain cases more than doubled. The move is expected to empower field commanders with greater decision-making authority, enabling faster conclusion of contracts and timely execution of projects.

The Ministry stated that financial powers related to indigenisation and research and development within the military ecosystem have been doubled to further the government’s Aatmanirbhar Bharat initiative and reduce dependence on foreign Original Equipment Manufacturers (OEMs). The revised framework is expected to facilitate procurement worth over ₹1.25 lakh crore through the revenue route, in line with the current year’s budgetary allocations.

Urgent operational requirements

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

To further decentralise decision-making, several new Competent Financial Authorities have been introduced, enabling quicker procurement of goods and services across the armed forces, it added.

The last revision of financial powers was notified in 2021. The Ministry said the latest update was necessitated by the expansion of force levels, increased operational expenditure and higher sustenance requirements, alongside enhanced budgetary allocations.

Officials noted that the revised financial powers, coupled with the updated Defence Procurement Manual notified in October 2025, are expected to streamline procurement processes, expedite decision-making and ensure timely availability of resources to the armed forces.

Senior defence officials were present during the release of the revised delegation framework.