The Ministry of Defence has launched three major digital and financial management initiatives to streamline accounting, automate payments and improve transparency across the Indian Armed Forces. Defence Minister Rajnath Singh unveiled these systems on October 1, 2026, during the Defence Accounts Department’s 279th Annual Day celebration at DRDO Bhawan in New Delhi.
The three initiatives represent a shift towards real-time financial tracking, paperless bill processing and integrated defence accounting. Together, they aim to consolidate financial systems across the Army, Navy and Air Force, reduce manual processes and enable better budget management for defence expenditure.
Key facts
- SAKSHAM system integrated with Indian Army Financial Information System (IAFIS) for digital transmission of budget, sanction and bill data
- Treasury Single Account (TSA) system operationalised through PRISM platform, fully integrated with RBI eKUBER
- National Compilation System (NCS) redesigned on new technical architecture for defence expenditure reporting
- Defence achieved nearly 100 percent expenditure in FY 2025–26
- SAMAR-SETU system manages pay and allowances for over 2.3 lakh Agniveers through automated processes
- Defence Minister emphasised shift from “Annual Review of Balances” to “Any Time Review of Balances”
- Awards presented for excellence in defence financial management and digitisation initiatives
SAKSHAM integration with Army financial system
The Defence Accounts Department operates SAKSHAM, a secure platform for digital accounting and payment processing across defence services. This system has now been integrated with the Indian Army Financial Information System, enabling real-time sharing of budget balances, bill status and financial information between the two organisations.
The integration eliminates the need for manual data entry and paper-based bill processing. Budget information, payment sanctions and bill details now flow automatically between systems, reducing delays and errors. This is a step towards complete digitisation of the defence payments ecosystem, where all three services—Army, Navy and Air Force—operate on unified financial protocols.
Treasury Single Account system for faster fund release
The newly operationalised Treasury Single Account system provides a centralised mechanism for releasing funds to autonomous bodies under the Ministry of Defence. Built on the Payment Routing and Integrated System Management platform and linked to the Reserve Bank of India’s eKUBER system, the TSA enables “Just-In-Time” fund transfers.
This system improves grant management for defence-linked autonomous organisations and provides greater visibility into spending. Instead of multiple bank accounts scattered across different bodies, the TSA consolidates fund flows and makes it easier to track where defence money is being spent.
Revamped National Compilation System for expenditure tracking
The Defence Accounts Department has redesigned the National Compilation System, which serves as the single authoritative source for all defence expenditure data in India. The new system operates on a modern technical architecture and provides accurate, granular reporting of defence spending.
The system generates budget reports and expenditure monitoring data for the Ministry of Finance, Ministry of Defence, Service Headquarters and regional Defence Accounts Controllers. This enables policymakers and budget planners to make informed decisions based on real-time spending data across defence establishments nationwide.
Supporting digital initiatives
The Defence Minister also highlighted SAMAR-SETU, a centralised system for managing pay and allowances of Agniveers, recruits inducted under the government’s Agnipath recruitment scheme. Operating from the Central Agniveer Pay and Accounts Office, the system handles pay accounts for over 2.3 lakh Agniveers through fully automated processes.
The Defence Minister stressed the need for automating grievance redressal through conversational AI platforms covering chat, SMS, WhatsApp, email and phone calls. He called for quality audits, digital data cleaning and prompt resolution of pending grievances and court cases related to defence personnel dues.
What this means for you
For defence personnel and pensioners, these digital systems mean faster bill payments, quicker resolution of pay disputes and more transparent tracking of defence spending. Agniveers and service members can expect automated, error-free salary and allowance processing with real-time status updates.
For researchers and policy analysts, the revamped National Compilation System and published handbooks provide more detailed and accessible defence expenditure data. Citizens can now access clearer information about how defence budgets are allocated and spent across the armed forces.
For defence establishments and autonomous bodies, the Treasury Single Account and integrated financial systems reduce bureaucratic delays in fund release and improve financial visibility and accountability.
What happens next
The Defence Accounts Department will continue implementation of SAMPURNA, a fully automated end-to-end revenue procurement system that will use data analytics, artificial intelligence and machine learning to support financial decision-making across defence services.