Arunachal Governor flags delays in project execution, year-end rush in fund utilisation

Arunachal Pradesh Governor K.T. Parnaik on Friday, June 19, flagged delays in project implementation and shortcomings in financial management, and called for better planning and greater use of technology to strengthen financial governance in the state.

Reviewing the audit report on the state's finances for the 2024–25 financial year, the Governor observed that Arunachal Pradesh's limited working season, coupled with delays in project execution, often leads to a rush to utilise funds towards the end of the financial year, affecting efficiency and project outcomes.

Emphasising the need for corrective measures, Parnaik said effective financial planning should begin well before budget allocations are made.

He noted that inadequate preparation often results in the loss of nearly two quarters of the financial year and advised departments to formulate detailed plans and project proposals in anticipation of budget approvals, drawing on funding trends and past experience.

According to the Governor, such preparedness would enable departments to initiate tendering processes and begin project execution immediately after funds are released.

Parnaik also stressed the importance of leveraging technology to improve transparency, efficiency and accountability in financial administration and project implementation.

During the review meeting, Principal Accountant General Vanlal Chhuanga briefed the Governor on the state's fiscal position and the status of action taken on audit observations and compliance reports.

Chhuanga stated that while Arunachal Pradesh remains in a comparatively healthy financial position compared to many other states, certain trends identified in audit findings warrant closer financial oversight and corrective action.

Officials said the review focused on strengthening financial discipline, improving project planning and ensuring the timely execution of development works across the state.

The Governor underscored the need for departments to adopt a proactive approach to financial management to ensure that public funds are utilised efficiently and development projects are completed within stipulated timelines.