Plans for non-lapsable defence
modernisation fund put on hold…
Ocials say all defence funding needs are being met as and when they arise;creating a non-lapsable pool has drawbacks as
it aects parliamentary scrutiny and accountability, and money is usually drawn from cesses levied for specic purpose…
Critical funding:
The idea of setting up a non-lapsable defence modernisation fund is on 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 aects parliamentary scrutiny and accountability.
Among Central Ministries, defence spending accounts for the largest outlays and the Ministry of Defence (MoD) had informed Parliament as recently as December 2023 that a “separate mechanism is being worked out” to explore a special dispensation to operationalise a “Non-lapsable Defence Modernisation Fund”.
“As of now, no such decision has been taken on such a Fund and it is not under any active contem plation because there are drawbacks such as reducing parliamentary accountability. The only funds
that are non-lapsable traditionally are those funded through cesses levied for a specic purpose,” a top Finance Ministry ocial said on the issue.
“Except for things – nanced through a cess, taking away today’s appropriations and saying I will use it tomorrow goes against the basic norms or parliamentary financial accountability. Parliament would like to know whether you spent the money they voted for, or not, and it needs to be told, Yes or No,” the first official said.
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. “If we are able to assure that funding without a non-lapsable fund and Budget provisions are made when necessary, then the question of a non lapsable fund becomes academic. The real question is to make funds available when they are necessary to complete the procurements that are decided upon,” he pointed out.
The idea of setting up a non-lapsable defence modernisation fund is on 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 aects parliamentary scrutiny and accountability.
Among Central Ministries, defence spending accounts for the largest outlays and the Ministry of Defence (MoD) had informed Parliament as recently as December 2023 that a “separate mechanism is being worked out” to explore a special dispensation to operationalise a “Non-lapsable Defence Modernisation Fund”.
“As of now, no such decision has been taken on such a Fund and it is not under any active contem plation because there are drawbacks such as reducing parliamentary accountability. The only funds
that are non-lapsable traditionally are those funded through cesses levied for a specic purpose,” a top Finance Ministry ocial said on the issue.
“Except for things – nanced through a cess, taking away today’s appropriations and saying I will use it tomorrow goes against the basic norms or parliamentary financial accountability. Parliament would like to know whether you spent the money they voted for, or not, and it needs to be told, Yes or No,” the first official said.
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. “If we are able to assure that funding without a non-lapsable fund and Budget provisions are made when necessary, then the question of a non lapsable fund becomes academic. The real question is to make funds available when they are necessary to complete the procurements that are decided upon,” he pointed out.