Defense Ministry sought non lapsable fund

New Delhi, Aug 11: A new initiative will soon be taken. The Defense Ministry has sought setting up of a non-lapsable capital fund". Ministry has said that the main Aim of setting up such funds is that "the unspent money does not go back at the end of any fiscal."

The news was confirmed in the latest report by the parliamentary standing committee on defense which was tabled in Lok Sabha yesterday. The report has said that the defense ministry proposal would remove uncertainty in availability of funds for military modernisation.

Currently, under the norms, the money unspent during the end of any fiscal year would go back to the finance department. Finance Ministry has replied that it will consider the proposal and will also look another alternative mechanism for modernizing the military.