Brief Summary
This episode of "Perspective" on Sansad TV features an interview with Dr. Mayang Sharma, the Controller General of Defense Accounts, discussing the critical role of the Defense Accounts Department (DAD) in managing India's vast defense budget. The conversation covers the department's history, functions, and ongoing digital transformation, including the use of AI and data analytics. Key initiatives like SPARSH for pension disbursement and the upcoming SAMPANNA project for end-to-end procurement automation are highlighted, along with DAD's role in UN peacekeeping missions. The discussion also looks forward to the Controller's Conference 2025 and the department's broader shift towards incorporating economic impact analysis into defense finance.
- The Defense Accounts Department (DAD) is one of the oldest departments in the Indian government, dating back to 1747.
- DAD performs four critical functions: financial advice, accounting, payment, and internal audit.
- Key initiatives include SPARSH for pension disbursement and the upcoming SAMPANNA project for end-to-end procurement automation.
- The department is undergoing a digital transformation, integrating AI, machine learning, and data analytics.
- DAD plays a crucial role in managing the financial aspects of UN peacekeeping missions.
Introduction to the Defense Accounts Department
The program introduces the Defense Accounts Department (DAD) as a crucial but often unseen engine driving India's defense and security landscape. With India's defense budget exceeding 6.81 lakh crore rupees, managing this vast financial ecosystem is more vital than ever. The DAD ensures the seamless flow of funds for everything from salaries to strategic procurements and is currently undergoing a digital and strategic transformation.
Overview of the Defense Accounts Department
Dr. Sharma explains that the DAD traces its history back to 1747 and has evolved from being paymasters to performing four critical functions: audit, accounting and payment, and financial advice. The financial advice function is integrated with the decision-making process from procurement to payment. The department ensures accountability through accurate and timely accounting of defense expenditure. Payments include vendor payments, salaries for armed forces personnel, and pensions for approximately 3.2 million pensioners, which is 50% of the central government pensioners. Internal audit is conducted to ensure compliance with government policies and to suggest process improvements.
Role in Budget Planning and Execution
The DAD plays a crucial role in budget planning and execution by providing inputs for appropriation accounts, which are a vital part of the budget. The department compiles data in real-time and ensures that expenditure aligns with budget allocations. It controls expenditure against the budget and prepares appropriation accounts.
Ensuring Transparency and Accountability
Dr. Sharma emphasizes that transparency is paramount. The DAD has a highly evolved compilation, audit, and payment system and is launching new projects to enhance transparency and accountability. The department is moving towards predictive and futuristic analytical tools to improve resource utilization decisions.
Integrating Technology in Operations
The DAD is undergoing a digital transformation, integrating technologies like AI, data analytics, and automation. The department has a history of computerization and is launching projects for end-to-end automation. SPARSH, a system for pension payment, has improved transparency and reduced processing times.
SPARSH and its Impact on Defense Pensioners
SPARSH has transformed the lives of defense pensioners by making the system transparent, open, and accessible. The department conducts outreach programs to address grievances and has established pension centers across the country. SPARSH facilitated the implementation of "One Rank One Pension" by enabling quick calculations and payments.
Service Delivery to Armed Forces and Vendors
The DAD monitors payments and deadlines through 31 controller offices across the country. The upcoming SAMPANNA project aims to automate procurement and payment processes, providing vendors with real-time tracking of transactions. The goal is to move from being controllers to collaborators with all stakeholders, becoming strategic enablers.
Role in UN Peacekeeping Missions
The DAD provides financial management support to UN peacekeeping missions. Officers are posted to ensure accountability and timely payments, maintaining high standards of professionalism and transparency. They address reimbursement and accounting challenges in real-time.
Controllers Conference 2025
The Controllers Conference is a biennial event for strategic dialogue and innovation. This year's conference is historic, focusing on transforming the department into a center of excellence for defense finance and economics. This includes conducting economic impact analyses of defense expenditure.
Shift Towards Defense Finance and Economics
The department is broadening its scope to include economic impact analysis, assessing the multiplier effect of defense expenditure on employment, taxation, and regional development. This shift involves structural, institutional, technological, and cultural changes, requiring reorientation of capacity building and HR policies.
Revised Defense Accounts Code
The revised Defense Accounts Code codifies accounting principles and processes, ensuring that all offices work in unison. The code is modernized to meet futuristic requirements and support real-time decision-making.
Impact of the Controllers Conference
The Controllers Conference will feature deliberations and discussions on long-term financial strategy and operational readiness. Thought leaders from industry and academia will provide insights, and a final paper will be prepared to guide the department's strategic direction.
Priorities for the Future
Dr. Sharma's top priority is complete transformation, reorienting the department towards defense finance and economics with a professional approach. The goal is to create a dynamic, adaptable organization that meets the evolving requirements and challenges of the times, making the DAD a future-ready organization.
