This Report of the Comptroller and Auditor General of India for the year ended March 2008 contains the results of the Performance Audit of the implementation of the National Rural Health Mission. The Performance Audit was conducted between April 2008 and December 2008 through test check of records of the Ministry of Health and Family Welfare, State and District Health Societies and health centres covering the period 2005-06 to 2007-08. The purpose of undertaking the performance audit of the implementation of activities under the Mission is to highlight the positive trends and developments, while simultaneously pointing out possible areas of weakness or shortcomings in field-level operations that could hinder progress towards achievement of the Mission’s overall goals. The performance audit concluded that NRHM’s attempt to rejuvenate the healthcare delivery system has succeeded in raising hopes and consequently, demands from the public health system. A focused prioritisation of interventions and adaptability based on feedback from States are necessary to help the Mission deliver on its goals.