Syllabus: GS-III, Subject: Economy, Topic: Fiscal policy and Budgeting, Issue: Non-lapsable Modernisation Fund for Defence
Context: Non-lapsable Defence Modernisation Fund off government agenda for now.
Non-lapsable Modernisation Fund for Defence:
- The 15th Finance Commission had recommended the constitution of a dedicated non-lapsable Modernisation Fund for Defence and Internal Security (MFDIS).
- The government in 2021 had said it has “in-principle” accepted the creation of such a fund in the Public Account of India.
- Reason for hold: Creating a non-lapsable pool has drawbacks as it affects parliamentary scrutiny and accountability.
Related Important Articles:
Articles 112-114 & 266 of the Constitution :
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