Reviewing the audit report of the state's finances for the 2024-2025 fiscal year, he observed that the state's limited working season, coupled with delays in project execution, often leads to a rush to utilise funds during March, adversely affecting efficiency and outcomes.
Emphasising the need for corrective measures, Parnaik said sound financial planning must begin well before budget allocations are made.
He observed that inadequate preparation results in the loss of nearly two quarters of the financial year and advised all departments to formulate detailed plans and project proposals in anticipation of budget approvals, based on funding trends and past experience.
"Such preparedness will enable departments to initiate tendering and project execution immediately after funds are released," he pointed out.
Earlier, Principal Accountant General Vanlal Chhuanga briefed the governor about the state's fiscal situation and the status of action taken on audit observations and compliance reports.
Chhuanga observed that while Arunachal Pradesh enjoys a comparatively healthy financial position among many states, certain concerning trends persist and warrant closer financial oversight and corrective action.
