New Delhi: In a move to dencentralise the control of certain heads and financially empower its commands to enable to take decision, the Army is considering a new budget management plan.
The plan called Command Budget Management Model, is expected to be implemented by financial year 2020-21, said sources.
“Once implemented, all the command headquarters would be empowered to plan their budget estimates, allocations and expenditures as per their respective priorities,” sources said.
“It will incentivise savings and optimise the revenue expenditure,” the sources said.
The model was recently tested in the central command, and now, a second phase of modalities is being worked out for its full implementation with the model being discussed at the last Army Commanders’ Conference in October.
As of now, the Vice-Chief of Army Staff (VCOAS) and the commanders have certain additional financial powers.
“There will be no change in the Army commanders’ financial powers or the powers of the VCOAS. Only formulation of expenditures is delegated to one level low,” the sources said.
A total of 40 budget code heads have been identified, on which command headquarters were to forward budget forecasts and estimates to the Army headquarters by the end of the year. This process is already complete, sources noted.
Based on the forecast and the total budget received from the government, the budget plan for each command headquarters will be chalked out by the Army headquarters. The process will be over by February 2020.
“This is for re-appropriation of financial power to Army commanders. This has been processed by the Army and approval from the defence ministry’s finance department is expected soon,” Army sources said.
It is looking at reconfiguring the coding of the budget, which will facilitate automation and reduce the number of code heads for easier and better management.
“There could be some teething issues, which would be resolved when it comes to effect,” the sources said.
