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Context:

Defence Minister Rajnath Singh highlighted the Defence Accounts Department's role in boosting Armed Forces' operational readiness and financial agility at the 2025 Controllers’ Conference in New Delhi.

What is the Defence Accounts Department (DAD)?

The DAD is the financial backbone of India’s defence services, functioning under the Ministry of Defence (MoD). It plays a critical role in ensuring timely payments, audit, financial advice, and accounting support for the Armed Forces and other MoD entities.

Why it’s important: By managing defence expenditures, pensions, claims, and accounts—with a network spanning 1,110 offices—it supports the operational preparedness and financial agility of the Armed Forces.

Organizational Structure

The DAD is headed by the Controller General of Defence Accounts (CGDA), who serves as the Principal Accounting Officer for the Ministry of Defence. The CGDA operates under the Department of Expenditure, Ministry of Finance, but functions in close coordination with the MoD. 

The department comprises a wide network of 1,110 offices across the country, serving the Indian Army, Navy, Air Force, Coast Guard, Defence Research & Development Organisation (DRDO), Ordnance Factories, and other defence organizations such as the Canteen Stores Department (CSD), Directorate General of Quality Assurance (DGQA), and Border Roads Organisation (BRO). 

Historical Evolution

• Beginnings: Originated in 1750 as “Military Pay Masters” under the East India Company, evolving to Commissary General (1776), Military Auditor General (1788), and Accountant General of the Military Department (1864).
• Modern Era: Officially became the Defence Accounts Department on 1 October 1951, with CGDA as head.
• Administrative Shift: Up to 1983, under the Ministry of Finance. Post‑introduction of the Integrated Financial Advisor (IFA) scheme in Aug 1983, realigned under MoD control.

Modernization and Digital Initiatives

In recent years, the DAD has embraced digital transformation through initiatives such as:

• Defence Accounts Receipts and Payments System (DARPS)
• Integrated Financial Advisor (IFA) system
• Online Pension Sanction and Payment Tracking (SPARSH)

These reforms aim to improve transparency, reduce delays, and align the department with modern public financial management standards. 

Source: DD News