Description

At the Controllers’ Conference 2025 held in New Delhi, the Defence Minister emphasized the pivotal role of the Defence Accounts Department (DAD) in enhancing both the operational preparedness and financial efficiency of India’s Armed Forces.

Overview Of Defence Accounts Department (DAD)

The Defence Accounts Department operates under the Ministry of Defence and is led by the Controller General of Defence Accounts (CGDA). Its core responsibilities span across financial advisory, auditing, payment processing, and the accounting of all expenditures associated with the Defence Services.

This includes:

• Settlement of bills related to procurement and service contracts

• Payments for construction and maintenance works

• Salaries, pensions, and allowances for military and civilian defence personnel

• Auditing of cash and inventory accounts across the defence ecosystem

Organizational Reach And Jurisdiction

The DAD maintains an expansive presence with 1,110 offices nationwide. It serves all three branches of the Armed Forces Army, Navy, and Air Force along with multiple affiliated organizations including:

• 41 Defence Ordnance Factories

• 50 DRDO Labs and Projects

• Indian Coast Guard

• DGQA, DGBR, DGNCC, and Defence Estates

• Canteen Stores Department (CSD)

Financial Oversight And Key Functions

As the principal accounting entity for the Defence Ministry, the CGDA compiles essential financial data for Appropriation Accounts. The department also:

• Prepares Annual Consolidated Accounts for Defence Receipts and Expenditures

• Acts as the Principal Accounts Officer for Civil Estimates under the Defence Ministry

• Finalizes the Annual Accounts for the Ordnance Factory Board, Military Farms, CSD, and Defence Works

Additionally, the Annual Audit Certificate for Defence Services generated by CGDA and submitted to the Comptroller and Auditor General (C&AG) via the Ministry of Defence is tabled in Parliament. The DAD is now also entrusted with the auditing of offset claims in defence contracts.

Historical Evolution Of DAD

The DAD is one of India’s oldest government departments, with its origins dating back to the East India Company era:

• 1750: First Pay Master appointed for Fort William’s garrison in Calcutta

• 1776: Creation of the Commissary General post to oversee military accounts

• 1788: Title changed to Military Auditor General, gaining control over military disbursements

• 1858: With British Crown rule, Military Accountants General were established in Bengal, Madras, and Bombay

• 1864: Establishment of the Accountant General, Military Department

• 1865: This role formally recognized as the head of the Military Accounts Department

• 1922: The office of the Military Accountant General (MAG) was restructured into eight divisions—Audit, Accounts, Records, Inspection, Estimates, Foreign Claims, Pay, and AN

On October 1, 1951, the department was renamed the Defence Accounts Department, and the head was officially designated as the Controller General of Defence Accounts (CGDA).

Initially functioning under the Ministry of Finance, the DAD was transferred to the Ministry of Defence in August 1983 with the implementation of the Integrated Financial Advisor (IFA) scheme.

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