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Kendriya Sainik Board:
ARMED FORCES FLAG DAY FUND
18. Kendriya Sainik Board administratively controls the Welfare Funds for the welfare and rehabilitation of ex-Servicemen, war widows/disabled and their dependents. With the issue of Govt of India, Ministry of Defence Notification No. SRO-7E dated 13 Apr 93, the following funds have been amalgamated into one fund named as "Armed Forces Flag Day Fund":
 
a. Amalgamated Special Fund for War Bereaved, War Disabled and other ex-Servicemen/Serving Personnel,
b. Flag Day Fund,
c. St. Dunstan's (India) and Kendriya Sainik Board Fund, and;
d. Indian Gorkha Ex-Servicemen's Welfare Fund.
19. The management and administration of the Armed Forces Flag Day Fund rests with the Managing Committee with Hon’ble Raksha Mantri as its Chairman.
Significance of Armed Forces Flag Day
20. The Armed Forces Flag Day is solemnly observed every year on 07 December. By displaying Armed Forces Flags on this day, the citizenry reinforce their solidarity with the Armed Forces for all that they do for the nation in the performance of their onerous duties. This reassures Defence Personnel that the entire nation is behind them.
21. On this day, the community also expresses its gratitude and appreciation by contributing to the ‘Armed Forces Flag Day Fund’ to honour the brave and the martyrs for their supreme sacrifice, as well as to salute the valiant soldiers, sailors and airmen, both serving and veterans.
22. This fund is utilized for a number of welfare programs instituted by the ‘Kendriya Sainik Board’ at the Centre and ‘Rajya Sainik Boards’ at the State level, for the benefit and empowerment of widows, disabled soldiers-sailors-airmen, ex-Servicemen and their dependents and also for serving personnel. The total clientele of the ESM/dependents is over a Crore.
23. Many brave and gallant heroes from the Armed Forces have laid down their lives in the service of the country. Ongoing counter-insurgency operations and Op Vijay in Kargil have also left many broken homes without a bread winner. Flag Day brings to the forefront our obligation of looking after our disabled comrade-in-arms, widows and dependents of those who have sacrificed their lives for the country.
24. To make various welfare programs instituted by Kendriya Sainik Board for this population meaningful, it requires generous voluntary participation and magnum support from one and all. The Flag Day has now become revered and time-honoured annual feature of our National life.
25. A concerted effort is made on this day to raise collections from the public. The significance of the Day is brought home through electronic and print media. In some places, Armed Forces formations and units also arrange variety shows, carnivals, dramas and other entertainment programmes.
26. Token flags and car flags in red, deep blue and light colours, representing the three Services are distributed to the public throughout the country by the Kendriya Sainik Board.
27. Collections made throughout the year are pooled into funds known as Armed Forces Flag Day Fund and Amalgamated Fund at the Centre and States respectively. The Fund is operated by a Managing Committee presided over by the Hon’ble Raksha Mantri at the Centre and by the Governor/Lt Governor of States/UTs. The Committee lays down the general policy and decides about the allocation of funds for various measures connected with the welfare of ex-Servicemen and their families.
28. The KSB receives a very small share of the Flag Day Fund collections made by each State/UT. The Centre's share is only one paisa per individual of the State/UTs population.