Audit Reports
Arunachal Pradesh
Report of 2010 – Financial Audit on State Finance of Government of Arunachal Pradesh
Overview
Government of Arunachal Pradesh responded to the Twelfth Finance Commission's [TFC] recommendation by legislating "Arunachal Pradesh Fiscal Responsibilities and Budget Management (APFRBM] Act in March 2006. The Act sets out a reform agenda through fiscal correction path in the medium term with the long-term goal of securing growth stability for its economy. The State Government implemented the Value Added Tax during 2005-06 which will go a long way in increasing tax revenue of the State.
The State Government has done well in establishing an institutional mechanism on fiscal transparency and accountability as evident from the year-on-year presentation of outcome budgets. These outcome indicators tend to serve a limited purpose of measuring the performance against the targets. They do not, however, give the big picture of the overall financial management including debt position, cash management, etc. for the benefit of the State Legislature and other stakeholders.