Delegation of Financial Powers to Defence Services, 2021 Rules

Delegation of Financial Powers to Defence Services, 2021 Rules

Part of: GS Prelims and GS- II –  Policies and interventions 

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

• The primary focus is to overcome procedural delays, bring about greater decentralisation and operational efficiency.

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.
• Focus on Operational Preparedness:
  • Critical equipment can be hired for short periods 
  • Field Commanders and below can procure equipment in a speedy manner for urgent operational necessities and meeting essential sustenance requirements.
• Promoting Ease of Doing Business:
  • Up to three times increase in funding related to Indigenisation/R&D to achieve ‘Atmanirbhar Bharat’.