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Shri Raj Kumar Arora, Financial Advisor (Defence Services)

Raj Kumar Arora Appointed as Financial Advisor for Defence Services

Analysis Date: November 01, 2025

Why in News?

  • Senior Indian Defence Accounts Service (IDAS) officer Shri Raj Kumar Arora, from the 1990 batch, has assumed charge as the Financial Advisor (Defence Services) on November 1, 2025. His appointment marks a major step in strengthening financial governance and accountability within India’s defence establishment.

Financial Advisor (Defence Services)

  • The Financial Advisor (Defence Services) (FADS) is one of the most important financial positions in India’s Ministry of Defence (MoD).
  • The office provides independent financial advice on defence expenditure, procurement, and budgeting to ensure transparency, accountability, and efficiency in financial operations of the armed forces.

Functions of the Financial Advisor (Defence Services)

  • Acts as the chief financial advisor to the Ministry of Defence and the Service Headquarters (Army, Navy, Air Force).
  • Advises the Defence Minister and Secretary (Defence Finance) on financial proposals, procurement plans, and budget allocations.
  • Ensures that defence expenditure is in accordance with government financial regulations and audit standards.
  • Plays a central role in defence acquisition, evaluating cost estimates and procurement contracts.
  • Monitors budget execution and performance for defence services, R&D establishments, and public sector undertakings under the MoD.
  • Works closely with the Defence Accounts Department (DAD) and Controller General of Defence Accounts (CGDA) to maintain fiscal discipline.

Organisational Framework

  • The FADS operates under the Department of Defence (Finance) — one of the five departments within the Ministry of Defence.
  • The Defence (Finance) department assists the Defence Minister in handling all financial matters and in framing financial policies for the defence services.
  • The Integrated Financial Advisors (IFAs) are posted in major commands and establishments to assist in financial scrutiny at the operational level.

Simplified Organisational Structure

Ministry of Defence (MoD)
Department of Defence (Finance)
Financial Advisor (Defence Services) - FADS
Integrated Financial Advisors (IFAs) at Commands

Related Institutions

Institution/Role Function
Defence Accounts Department (DAD) Handles accounting, auditing, and payment for the Armed Forces.
Controller General of Defence Accounts (CGDA) Heads the DAD; responsible for maintaining defence financial records.
Ministry of Defence (Finance Division) Oversees budgeting, procurement finance, and financial policy formulation.
Integrated Financial Advisors (IFAs) Provide on-ground financial vetting and approval at command and unit levels.

Quick Facts: Financial Advisor (Defence Services)

Post Title Financial Advisor (Defence Services)
Officer Shri Raj Kumar Arora
Service Indian Defence Accounts Service (IDAS)
Batch 1990
Date of Appointment November 1, 2025
Previous Position Controller General of Defence Accounts (CGDA)
Reporting Ministry Ministry of Defence, Government of India
Key Functions Financial oversight, audit, acquisition, budgeting, policy planning
Objective Ensure transparency, fiscal discipline, and efficient defence expenditure