The Flag Day would be observed on 7th December, each year to honour the valiant, the martyred, to salute the brave veterans and to enhance the traditional bonds that exist between citizens of the country and Armed Forces Flag Day.This Day has now become an old and honoured annual feature of our national life.It is on this day that the services rendered by personnel of Army, navy and Air Force are remembered.The day is used to enlist the public co-operation and support for three basic purposes

• Rehabilitation of families of battle casualties
• Welfare of serving personnel and their families
• Resettlement and welfare of Ex-servicemen and their families in general.

On this day citizens and volunteer organizations collect donations in exchange of token flags and car stickers throughout the country.Concerted efforts are made on this day to raise collection from the public.The significance of the Day is brought home to the potential donors in a variety of ways.The Flag Day message from H.E. the Governor of Andhra Pradesh was displayed through media to step up collections.We get the major chunk of donations / contributions from Non Gazetted Officers of Andhra Pradesh and from Gazetted Officers of A.P, citizens from their salary for the month of December of the every year.

The money so collected on the occasion of Armed Forces Flag Day are is in a fund known as Special Fund for Rehabilitation & Reconstruction of Ex-servicemen. The interest so accrued from the fixed deposits is utilized for carrying out welfare activities to the Ex-servicemen, war widows, widows & dependents of Ex-servicemen of Andhra Pradesh. The corpus and utilization of interest is controlled by State Managing Committee (SMC) constituted by the Government of Andhra Pradesh which meets once in six month time to review the functioning of Special Fund. Policy directions on utilization of money are laid down by the SMC. H.E the Governor is the ex-officio the Chairman and Chief Secretary to the Government is the ex-officio Vice-Chairman. The Director Sainik Welfare, Hyderabad is ex-officio the Secretary of SMC. A number of Senior Officers of the Government and senior retired defence personnel are the members of the committee. The Secretary carries out day to day functioning of Special Fund and distributes various welfare grants to the beneficiaries