12April,Delhi : Raksha Mantri Shri Rajnath Singh has stressed on the need to devise innovative methods to maximise the value of money spent on the security needs of the country, terming a robust defence finance system as the backbone of a strong military. Inaugurating the three-day International Conference on Defence Finance & Economics in New Delhi on April 12, 2023, Shri Rajnath Singh asserted that a legal and procedural defence-finance framework is an integral part of a mature state system, which ensures prudent management of the defence expenditure.The Raksha Mantri stated that such a framework, which includes expenditure control as per guidelines, financial advice by professionals, audit, payment authentication mechanism, etc., ensures that the defence spending is well within the allocated budget and the full value of money is realised. He emphasised that while the Armed Forces require a superstructure of defence ecosystem, involving R&D organisations, industries, soldier welfare organisations, etc., they also need a well-funded system with a robust architecture to ensure the optimum and judicious use of financial resources.Shri Rajnath Singh was of the view that it is difficult to apply the economic concept of full value of money in defence expenditure, as in this sector, there is no visible revenue stream and no easily identifiable beneficiaries. To maximise the value of money spent, he stressed that the rule of competitive bidding through open tender must be followed in defence procurement.“In the case of procurement of defence platforms/equipment, either under capital or revenue route, the gold standard of Open Tender should be adopted to the extent possible. A competitive bid based procurement process, which is open to all, is the best possible way to realise the full value of the public money being spent. There would be some rare cases when it may not be possible to go for an open tender process. Such instances should come under exceptions and exceptions should not become the rule,” the Raksha Mantri said.
