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Delegation of Financial Powers to Defence Services, 2021 Rules

  • 09 Sep 2021
  • 2 min read

Why in News

Recently, the Ministry of Defence has released the Delegation of Financial Powers to Defence Services (DFPDS), 2021 rules.

  • The primary focus of the enhanced delegation of financial powers is to overcome procedural delays, bring about greater decentralisation and operational efficiency.
  • The DFPDS 2021 rules is another big step in defence reforms to strengthen security infrastructure.

Key Points

  • Key Highlights of DFPDS 2021:
    • Financial Powers Devolved to Field Formations:
      • Enhanced the delegation of revenue procurement powers for the Army, Navy and Air Force.
      • 10% increase in Delegated Financial Powers of Vice Chiefs of Services.
      • Financial powers have also been delegated to new officers among the services, depending on requirements.
    • Focus on Operational Preparedness:
      • Under the new rules, critical equipment can be hired for short periods as compared to purchases or a long-term lease, which are not only considerably expensive but also take a long time.
      • Enhanced delegation of financial powers is to empower Field Commanders and below to procure equipment/war-like stores in a speedy manner for urgent operational necessities and meeting essential sustenance requirements.
    • Promoting Ease of Doing Business:
  • Recent Reforms in Defence Sector:

Source: IE

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