Defence Ministry, Finance Commission explore alternative sources of defence funding

The Defence Ministry and the 15th Finance Commission on Friday held a meeting and explored alternative sources of funding for defence and internal security.

"Ministry of Defence officials apprised the commission that it was exploring a number of alternative sources of funding," said an official statement.

The meeting was held in line with a Finance Ministry notification, which was followed by presidential order, directing the commission to examine whether a separate mechanism for funding of defence and internal security ought to be set up and how such a mechanism could be operationalised.

"During the meeting, Defence Ministry gave its fund projections for the period 2020-2025, which is also the award period of the 15th Finance Commission," it said.

The ministry also informed the commission about the allocated budget for the Ministry of Defence in comparison to the projections.

"The Finance Commission assured the Defence Ministry that it would take into consideration all the suggestions made that would help to increase the overall capital space of the Ministry, bring about predictability and help the Ministry in its defence preparedness," it added.

Chief of Naval Staff Admiral Karambir Singh and several other senior officials of the ministry also attended the meeting.