Raksha Mantri Shri Rajnath Singh approved the revised Delegation of Financial Powers for the Defence Services on June 04, 2026, in New Delhi. The enhancement in financial powers has been made up to 100%, with some cases seeing more than double the previous limits. This revision will strengthen the operational efficiency of field commanders and lead to faster conclusion of contracts and execution of projects.
The financial powers delegated for indigenisation and Research & Development within the military ecosystem have been doubled to boost Aatmanirbharta in defence by minimizing dependency on Foreign Original Equipment Manufacturers. The revised delegation will facilitate procurement exceeding ₹1.25 lakh crore through the revenue route, as per current year budgetary allocations.
Special financial powers delegated to Army, Air Force, and Naval commanders have been significantly increased, with a 100% increase in the total ceiling provided to meet urgent operational requirements. New provisions have been introduced to promote Joint Service procurement by the Lead Service with higher delegation than normal procurement. Many new Competent Financial Authorities have been established to decentralize the procurement of Goods and Services.
The revision was necessitated due to expansion in force level and increased expenditure on operations and sustenance vis-à-vis the increase in budgetary allocation. Financial powers were last notified in 2021. This revised delegation, along with the revised Defence Procurement Manual notified in October 2025, will give a fillip to defence procurement with expeditious decision making, leading to timely availability of resources for the Defence Forces.
The event was attended by Chief of Defence Staff General NS Raja Subramani, Chief of the Army Staff General Upendra Dwivedi, Chief of the Naval Staff Admiral Krishna Swaminathan, Defence Secretary Shri Rajesh Kumar Singh, Secretary (Defence Production) Shri Sanjeev Kumar, Secretary (Ex-servicemen Welfare) Smt Sukriti Likhi, Secretary (Defence Finance) Shri Vishvajit Sahay, Vice Chief of the Air Staff Air Marshal Nagesh Kapoor, and Controller General of Defence Accounts Shri Anugraha Narayana Das, along with other senior officials.