In what could be a major change in how government allocates funds for national security, the Union Cabinet Wednesday asked the Finance Commission to consider if “adequate, secure and non-lapsable” funds could be provided for defence and internal security. It also extended the term of the Fifteenth Finance Commission by a month to November.
The decision buttresses the Union Government’s emphasis on national security which, both Prime Minister Narendra Modi and Union Home Minister Amit Shah have stated, is one of their primary areas of focus. The Finance Commission has been asked to examine whether a separate mechanism for funding of defence and internal security ought to be set up, and if so, how could it be operationalised.
If the recommendations made by the Finance Commission — which is constituted under Article 280 of the Constitution — are accepted, it will fundamentally alter the funding mechanism for defence and internal security. Read More