Recently a parliamentary house panel has suggested for a setting up a dedicated fund for committed liabilities and Procurements in defence. This was suggested because of the widening gap between projected and allocations in defense budget according to the panel this can harm the defense preparedness of India. Committed liabilities are payments anticipated during a financial year for contracts concluded in previous years. This news is related to the topic government policies of GS 2. Details about Parliament committees can be important for prelims, whereas steps needed to be taken for defence modernization can be important for mains.