Ministry of Defence
Army
Air Force
Navy
Coast Guard
Ordnance Factories
Border Road Organisation
Defence Research & Development Organisation
Indian Defence Estates Services
Indian Defence Accounts Services
Defence Secretariat Service
Department of Defence Production
Integrated Financial Advice and Control
• Ministry of Defence and the Services have a full-fledged internal
financial control system in place headed by the Secretary
(Defence Finance)
• This responsibility is discharged through the Defence Accounts
Department with the Controller General of Defence Accounts as
its head.
• Scrutinize all proposals involving expenditure from the Public
Fund.
• Provide financial advisory services to Ministry of Defence and
the Services at all levels
• Treasury control of the Defence expenditure.
• The internal audit and accounting.
Financial Aspects and Budgetary Management
• The budgetary allocations of the Ministry of Defence are
contained under eight Demands for Grants of which six grants are
included under Defence Service Estimates and two under Civil
Grants.
• Civil Grants
– Demand No. 20 - Ministry of Defence (Civil)
– Demand No. 21 - Defence Pensions.
• Defence Service Estimates
–
–
–
–
–
Demand No.22, Defence Service - Army
Demand No. 23, Defence Services - Navy
Demand No. 24, Defence Services - Air Force
Demand No. 25, Defence Ordnance Factories
Demand No. 26, Defence Services - Research & Development
– Demand No. 27, Capital Outlay on Defence Services –Includes all Services
and Departments other than those covered above
Budget allocation and Actual
expenditure (Rs. in Crore)
• Year
•
•
•
•
•
2008-09
2009-10
2010-11
2011-12
2012-13
Budget Provision
1,25,414.04
1,48,499.26
1,56,126.83
1,78,891.06
1,98,525.90
Actual Expenditure
1,18,006.03
1,45,781.04
1,58,723.20
1,75,897.94
1,87,469.00
Army Commands
• HQrs Northern Command, Jammu
• HQrs Western Command, Chandimandir
• HQrs Eastern Command Fort William Kolkata
• HQrs Southern Command, Pune
• Central Command, Lucknow
• HQrs South Western Command Jaipur
• Army Training Command Shimla
• Andman and Nicobar Command Port Blair
• Each command is headed by General Officer
Commanding-in-Chief of the rank of Lt General
Army structure
• Each Command has 3 Corps commanded GOC (Corps
Commander) - Lt General
• Each Corps is composed of 3-4 Divisions commanded by GOC
(Div Commander) – Major General
• Each Div has 3-4 Brigade consisting of 3000 combats
commanded by Brigadier
• Each Brigade has three Bn each commanded by Colonel
• Each Bn has four companies commanded by Major or Lt Col
• Each Company has three platoon commanded by JCO
• Platoon composed of three sections each of 10 personnel
commanded by Havaldar
• Striking Corps 1,2, 21 (Pakistan facing) and 17 (China Facing)
Pannagarh at present at Ranchi
•
Infantry Regiments
Brigade of the Guards, Kampti
Parachute Regiment, Banglore
Mechanised Infantry Regiment, Ahmed
Nagar
Punjab Regiment, Ramgarh Jharkhand
The Madras Regiment
The Grenadiers
Maratha Light Infantry
Rajputana Rifles, Delhi Cantt
Rajput Regiment
Jat Regiment
Sikh Regiment
Sikh Light Infantry
Dogra Regiment
The Garhwal Rifles
Kumaon Regiment Assam Regiment
Bihar Regiment
Mahar Regiment
Jammu & Kashmir Rifles
Jammu & Kashmir Light Infantry
Naga Regiment
1 Gorkha Rifles (The Malaun Regiment)
3 Gorkha Rifles
4 Gorkha Rifles
5 Gorkha Rifles (Frontier Force)
8 Gorkha Rifles
9 Gorkha Rifles
11 Gorkha Rifles
Ladakh Scouts
Rashtriya Rifles
Arunachal Scouts
Sikkim Scouts
Ladakh Scouts,
Artillery, and Armoured Regiments
Auxiliary services
Military Engineer Services
Army Medical Corps
Military Dairy Farms
Army Ordnance Corps
Directorate General Resettlement
Directorate General Defence Estates
Directorate of Public Relations
Canteen Stores Department
Army Purchase Organisation
Services Sports Control Board
Directorate General Quality Assurance
Armed Forces Films and Photo Division
History Division, Ministry of Defence
College of Defence Management
Border Roads Development Board/ Border
Roads Organisation
Armed Forces Supply Corps
Station HQrs
NCC
Army Education Corps
Army Armoured Corps
Army Corps of Signal
Education &
Training
Armed Forces Medical College, Pune
Rashtriya Military School, Ajmer
Rashtriya Military School, Bangalore
Rashtriya Military School, Balgaum
Rashtriya Military School, Chail
Dholpur Military School
Rashtriya Indian Military College, Dehradun
Sainik School Amaravathinagar,(Tamil Nadu) Ambikapur,
(Chatisgarh), Balachadi, Jamnagar Bhubaneswar
Bijapur,(Karnatka) Chittorgarh, Ghorakhal, (Nainital) Goalpara
(Assam), Kapurthala , Kazhakootam( Thiruvananthapuram),
Kodagu(Karnatka), Korukonda (Vizianagaram AP), Kunjpura
(Karral), Lucknow Manasbal, Nagrota, Nalanda, Punglwa (Peren,
Nagarland), Purulia, Rewa, Sujanpur Tihra (Near Distt Harmirpur
HP, Tilaiya (Jarkhand)
TriService
Defence Services Staff College, Wellington
National Defence Academy, Khadakwasla
National Defence College, New Delhi
Indian Army
Army Cadet College, (Siachen Battalion)
Dehradun
Army War College
College of Military Engineering
Counter-Insurgency and Jungle Warfare School
Vairengte Mizoram
High Altitude Warfare School
Indian Military Academy
Military College of Telecommunication
Engineering
Officers Training Academy
Air Force
Air Force Academy
Indian Air Force Test Pilot School
Army
Lieutenant
15600-39100
5400
Captain
15600-39100
6100
Major
15600-39100
6600
Lt Colonel
37400-67000
8000
Colonel
37400-67000
8700
Brigadier
37400-67000
8900
Major General
37400-67000
10000
Lt. General
67000 (AI @ 3%)- 79000
Nil
Vice Chiefs/ Army Commander
80000 (Fixed)
Chief of Army Staff
90000 (Fixed)
Military Service Pay Rs.6000 upto rank of Brigadier
Pilot Officer
AIR FORCE
Flying Officer
Airman
Flight Lieutnant
Leading Aircrafts man
Squadron Leader
Corporal
Wing
Commander
Sergeant
Group Captain
Junior Warrant Officer
Air Commodore
Warrant Officer
Air Vice Marshal
Master Warrant Officer
Air Marshal
Air Chief Marshal
Indian Navy
Admiral
Vice Admiral
Rear Admiral
Commodore
Captain
Commander
Lieutenant
Commander
Lieutenant
Sub-Lieutenant
Four Services
Indian Army
Indian Air Force
Indian Navy
Field Marshal
Marshal of the Air Force Admiral of the Fleet
General
Air Chief Marshal
Coast Guard
Admiral
Director General
Lieutenant General Air Marshal
Vice Admiral
Additional Director
General
Major General
Air Vice Marshal
Rear Admiral
Inspector General
Brigadier
Air Commodore
Commodore
Deputy Inspector
General (Senior)
Colonel
Group Captain
Captain
Deputy Inspector
General (Junior)
Lieutenant Colonel Wing Commander
Commander
Commandant
Major
Squadron Leader
Lieutenant
Commander
Commandant (Junior
Grade)
Captain
Flight Lieutenant
Lieutenant
Deputy Commandant
Lieutenant
Flying Officer
Sub-Lieutenant
Assistant Commandant
Kodandera Madappa Cariappa and Sam
Maneksha
Arjan Singh
Army
Pay Band Grade Pay Air Force
Navy
Sepoy
5200-20200
1800
Airman
Seaman II
Lance Naik
5200-20200
2000
Leading Aircraftsman
Seaman 1
Naik
5200-20200
2400
Corporal
Leading Seaman
Havaldar
5200-20200
2800
Sergeant
Petty Officer
Nb Sub
9300-34800
4200
Junior Warrant Officer
Chief Petty Officer
Master Chief Petty
Officer (2nd Class)
Subedar
9300-34800
4600
Warrant Officer
Sub Major
9300-34800
4800
Master Warrant Officer
In addition MSP @ Rs. 2000/- pm
Master Chief Petty
Officer (1st Class)
Comptroller & Auditor General of India
Defence Audit
States Audit
Post & Telegraph Audit
Railway Audit
etc
Delhi Cantt
Principal Director of
Audit Chandigarh
Jammu (NC)
Meerut (CC)
Army
Director General of Defence
Services, New Delhi
Allahabad
Patna (EC)
Defence Audit
Navy and Coast Guard
Principal Director of
Audit, Navy , New Delhi
Principal Director of
Audit , SC, Pune
Chennai
Principal Director of Audit,
Defence Services, Navy Mumbai
Visakhapatnam
Dehradun
Air Force
Principal Director of Audit, Air
Force, New Delhi
Bangalore
Jabalpur
Ordnance Factories
Principal Director of Audit
Ordnance Factories, ColKatta
Kanpur
Chennai
Supreme Audit Institutions
• Regularly reviewing the work of internal auditors
and helping improve the overall quality of the
oversight function ƒ
• Cooperating with internal auditors in planning audit
coverage and using the work of the internal auditor,
wherever feasible, to reduce duplication and
• Impressing upon governments the criticality of the
internal control function, including the role of
internal audit therein
Authority for Audit
• The authority for our audit is derived from Articles
149 and 151 of the Constitution of India and the
Comptroller and Auditor General’s (Duties, Powers
and Conditions of Service) (DPC) Act, 1971.
• We conduct audit of Ministries/Departments of the
Government of India under Section 13 of the CAG’s
(DPC) Act.
• Major Cantonment Boards are audited under Section
14 of the said Act.
• Principles and methodology of compliance audit are
prescribed in the “Regulations of Audit and Accounts,
2007”.
Planning and Conduct of Audit
• Risk assessment of the Organisation based on
–
–
–
–
expenditure incurred,
criticality and complexity of activities,
level of delegated financial powers,
assessment of overall internal controls, and concerns of
stakeholders.
– previous audit findings
Contd…
• Local Test Audit Reports (LTARs) containing audit
findings are issued to the Head of the unit.
• Furnish of replies to the audit findings within a
month
• Important audit observations arising out of these
LTARs are processed for inclusion in the audit
reports.
• The reports are submitted to the President of India
under Article 151 of the Constitution of India.
• The primary purpose of the report is to bring to the notice
of the legislature
• Important results of audit.
• Commensurate with the volume and magnitude of
transactions.
• Enable the Executive to take corrective actions as also
frame policies and directives that will lead to
• Improved financial management of the Organisations,
thus contributing to better governance and improved
operational preparedness.
Five Tier Classification
• Sectors
Major Heads (Sub-Major Head in case of
Capital Outlay)
Minor Heads
Sub-Heads
Detailed Heads
Scrutiny and Certification of Appropriation Accounts of
the Defence Services
• The number and/or nomenclature of the Grant/Appropriation
have been mentioned correctly;
• The heads of account mentioned in the Accounts are
authorised ones
• The sub-heads have been grouped separately in the ‘Revenue’
and ‘Capital’ Sections and ‘Charged’ and ‘Voted’ figures have
been shown distinctly
• The original provisions, supplementary provisions and
amounts re-appropriated or surrendered have been exhibited
correctly
• Gross figures of expenditure have been adopted in cases
where recoveries by debit to heads of account under a
different Grant/Appropriation are adjusted in reduction of
expenditure
Contd…
• Excesses and savings have been explained in all cases
according to the monetary limits prescribed and wanting
information, if any, has been called for
• The facts and figures mentioned in various “Notes” are
correct
• The grant-wise details of estimates and actual recoveries
adjusted in reduction of expenditure have been prepared
correctly
• the amounts exhibited in the accounts tally with those shown
in the Finance Accounts; and the amounts shown in the Grant
Summary of Appropriation Accounts agree with grant-wise
details of recoveries, and reconciliation of the expenditure in
the Appropriation Accounts with that reflected in the Finance
Accounts has been worked out correctly in the Grant
Summary
•
•
•
•
•
•
Contd…
Whether all-important variations under the units of
appropriation have been explained
Whether any explanation requires modification or comment
as a result of audit
Whether the re-appropriation of money from one head to
another is as per rules in vogue
Funds should not be appropriated or re-appropriated to meet
the expenditure on New Services/New instrument of Services
etc
Whether there is any rush of expenditure in the March, i.e;
the closing month of the financial year
Surrenders have been made in time wherever foreseen
without waiting till the end of the financial year to meet the
requirements of possible future excesses
Contd…
• All re-appropriations exceeding the limit of 25 per cent of
Budget Estimates or Re. 1 crore or more under a sub head,
had the prior approval of Secretary (Expenditure)/Additional
Secretary (Expenditure), Ministry of Finance
• Whether all such re-appropriations had been reported to the
Parliament along with the last batch of Supplementary
Demands for grants for their reflection in the Annexure to the
last batch of Supplementary Grants
• In terms of Rule 56(3) of General Financial Rules, 2005, rush
of expenditure, particularly in the closing months of the
financial year, shall be regarded as a breach of financial
propriety and shall be avoided.
• Rule 58(1) of General Financial Rules 2005 enjoins that a
subordinate authority incurring the expenditure will be
responsible for ensuring that the allotment placed at its
disposal is not exceeded.
• Non-inclusion of Value Added Tax in the quote
resulting in non recovery of Value Added Tax /
Central sales Tax paid – Rs. 5.51 crore by
BEML
• Non-recovery of Statutory duties (Excise Duty)
of Rs1.31 crore from MoR by BEML. The duty
was levied during period of supply
False claim of Dip Money
All qualified divers of the Indian Navy, belong to a specialised cadre, and are
entitled to “Diving Allowance” and “Dip Money”. Indian Naval Diving Team (INDT),
Delhi is equipped with one ReCompressed Chamber of a capacity of eight divers
to facilitate practice diving. However, between September 2008 and July 2011, on
more than one occasion, 9 to 65 divers simultaneously were indicated to have
made practice diving in a chamber with a capacity of only eight divers. Weak
internal controls, improper document maintenance and falsification of official
records at INDT (Delhi) led to an incorrect payment of Rs.10.24 lakh as Dip
Money.
Inadmissible payment of Bonus
Irregular payment of Field Service Allowances
Undue benefit of Rs.0.68 crore to private firms due to non-recovery of
Service Tax by VRDE and payment of the same out of Resource
Generation Fund
Irregular payment of interest on procurement of Bofors Guns/ Ammunition
Books
Scale of Accommodation
Scale of Furniture
Ration Scale
Ammunition Master Key
Peace Establishment/War Establishment
Military Service Establishment Regulation
Pay & Allowances Regulation for JCOs/ORs
Pay & Allowances Regulation for the Officer
Armed Forces Ordnance Regulation
Purchase Manual
General Financial Rules
Defence Account Code
Classification Hand Book Defence Services