The delivery of primary health care is the foundation of Rural Health Care System and forms an integral part of the National Health Care System. In Arunachal Pradesh, health care services in rural areas are provided through a network of Health Sub-Centres (HSC), Primary Health Centres (PHCs) and Community Health Centre (CHCs). The programme is funded by the Central and the State Governments. This performance audit of Rural Health Services in Arunachal Pradesh for the period 2001-2006, highlights irrational establishment of rural health centres, irregular deployment of medical and paramedical staff, poor outturn of indoor patients, cases of diversion of funds, injudicious/unproductive expenditure and idle outlay, which adversely affected the delivery of health care services to the rural population. Main audit findings are presented below:

1. There was irrational and excess establishment of rural health institutions in contravention of norms.
2. There was idle stock of health care kits worth Rs.41.19 lakh.
3. Rupees 27.72 lakh pertaining to rural health care services was diverted to urban health services.
4. Rupees 25.71 lakh was paid to a supplier on the basis of fictitious stock entry before actual receipt of the medicines.