Rajnath Singh launches SAKSHAM-IAFIS integration to modernise defence financial management

New Delhi: Defence Minister Rajnath Singh on Thursday October 1 launched the integration of the Indian Army Financial Information System (IAFIS) with the Defence Accounts Department’s SAKSHAM platform, as the DAD marked its 279th Annual Day in New Delhi. The integration is aimed at creating a more connected and paperless financial management system for the Army.

The integration enables digital transmission of budget, sanction and bill-related information between IAFIS and SAKSHAM, while allowing real-time sharing of bill status and budget balances. It is also designed to facilitate paperless processing of bills, strengthening transparency and efficiency in defence financial administration.

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Singh also launched the revamped National Compilation System (NCS) and the Treasury Single Account (TSA) system for the Ministry of Defence. The TSA has been operationalised through the Payment Routing and Integrated System Management (PRISM) platform and integrated with RBI’s eKUBER system to enable just-in-time release of funds to autonomous bodies under the Defence Ministry.

The revamped NCS is intended to serve as a single source for the accounting and compilation of defence expenditure across the country. Its new technical architecture is designed to improve budget reporting and expenditure monitoring, while providing more granular information to the Ministry of Finance, Ministry of Defence, Service Headquarters and field-level controllers.

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Calling for deeper digital integration, Singh urged the DAD to move from an “Annual Review of Balance Budget” to an “Any Time Review of Balance Budget”, with systems capable of providing real-time information on the Ministry’s financial position. He also called for better digital-data management and greater automation of grievance redressal, including through conversational AI.

The Defence Minister highlighted that defence expenditure booking for 2025-26 was nearly 100 per cent, crediting the DAD and the three Services for the achievement. He also called for wider use of technologies such as AI to strengthen financial management and detect potential fraud.

The event also saw the release of the Comprehensive Statistical Handbook on Defence Expenditure (COSHE) 2026, Raksha Lekha Bharati and the Market Intelligence Report 2025-26, along with the presentation of the Raksha Mantri Awards for Excellence 2026.

Tracing its origins to the appointment of the Military Pay Master in 1747, the DAD provides internal audit, accounting, financial advice and defence pension management services for the Ministry of Defence and the armed forces

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