N K Singh, Chairman of the 15th Finance Commission addressed Higher Defence Management Course at College of Defence Management, Secunderabad online on "Modernisation Fund for Defence and Internal Security: Challenges for Armed Forces".
He brought out that the 15th Finance Commission responding to a special Terms of Reference given to them in regard to the non-lapsable fund and its financing options made detailed recommendations to the government.
Based on the deliberations of a Committee constituted by the Commission, it recommended the creation of a non-lapsable fund in the Public Accounts for capital outlay and modernisation as well as possible financial options for constituting this fund.
The Commission in their recommendations also mentioned the need to progressively reduce revenue expenditure and enhance capital outlays expenditure. It had made a number of suggestions on mitigating the impact of the rising pension bills in the defence, which had significantly reduced the capital outlay in the overall defence budget.
Shri Singh in his address, apart from outlining these recommendations made to the government, said that the Action Taken Report tabled by the Finance Minister along with the full report of the Finance Commission, reads, "The Government has accepted in principle, the creation of a non-lapsable fund for Defence in the Public Account of India." Shri Singh hoped that as the pandemic and fiscal pressures abet, this recommendation would be given operational content by determining the financing options and modules.
Shri Singh's address was followed by an interactive session during which he reiterated and underscored that security and development must go hand-in-hand as investors, both domestic and foreign, look to risk perceptions and want to be assured that their investment destinations are safe given the fast-changing geopolitical global context. The symmetry of development and defence could not be overstated.
Air Vice-Marshal Pawan Mohey, VSM, Commandant, College of Defence Management thanked Shri NK Singh for addressing the course officers on a very contemporary issue.
( With inputs from ANI )
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