Non-lapsable Defence Modernisation Fund off govt. agenda for now
The HinduThe idea of setting up a Non-lapsable Defence Modernisation Fund is off the table for now, top government officials told The Hindu, stressing that all defence funding needs are being met as and when they arise, and creating a non-lapsable pool has drawbacks as it affects parliamentary scrutiny and accountability. Among Central ministries, defence spending accounts for the largest outlays and the Ministry of Defence had informed Parliament as recently as December 2023 that a “separate mechanism is being worked out” by the Ministry of Finance in consultation with the MoD to explore a special dispensation to operationalise a “Non-lapsable Defence Modernisation Fund”. Assurance of funding Ministries would only want a non-lapsable fund for a certain “assurance of funding”, pointed out another government official dealing with the subject. Asserting that all necessary defence capital spending has been provided for by the Interim Budget 2024-25, the official emphasised that the consolidation of capex demands of the Services under one head instead of three heads for each Service in the Budget, provides more space for the Defence Ministry to optimise the use of available resources.
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