Top state and city officials met in Midtown Thursday for an annual meeting of the State Financial Control Board, which provides oversight over the city budget.

The panel signed off on the city’s budget, passed back in June, but not before some argued that the city needs to proceed with caution when it comes to future spending.

Overall, the fiscal situation appears positive, but budget experts warned that there could be challenges ahead.

“Our administration [has] had to do what everyday homeowners are doing and that means managing the money we spent,” Mayor Eric Adams said during his Thursday presentation

Touting a rosier financial picture compared to six months ago, Adams boasted about his administration’s handling of taxpayer dollars.

He said both his administration and the City Council closed a balanced, $112.5 billion budget by “carefully estimating tax revenues so that we live within our means, staying focused on achieving savings using taxpayer dollars efficiently and monitoring spending, from day one that was my mission and that was my goal.”

The action was only accomplished after reversing planned cuts to key agencies.

“We were able to do it without layoffs, without increasing taxes and maintaining [strong] reserves,” he added.

Meanwhile, a political rivalry simmered as the board met.

“The biggest weaknesses in terms of budget presentation and fiscal health are one, persistent under budgeting or you could say pretending, by $3 billion dollars a year which is not honestly presenting what real costs are,” Brad Lander, the Democratic New York City Comptroller, who is also a member of the Financial Control Board, said.

Lander also wants Adams’s job, recently announcing his intentions to run for mayor.

The pair sat side by side on Wednesday.

“There are real challenges facing New York City and as I’m out talking to New Yorkers, they want new leadership,” he said, when asked why he’s seeking higher office, after previously pledging not to run for mayor, according to a report in Politico.

Releasing his own analysis, Lander criticized Adams for under budgeting billions in city costs and said the city needs to be more transparent about where it plans to spend taxpayer dollars.

“The budget dance doesn’t feel like an honest conversation, so you cut the libraries, you restore the libraries, then you say hooray!” he added.

Meanwhile, Democratic state Comptroller Thomas DiNapoli argued the mayor benefited from his initial conservative estimates.

Financial risks like a multi-billion dollar migrant crisis contributed to Adams’s decision to introduce a budget control measure called a “Program to Eliminate the Gap,” or PEG.

“Situations do change and the city benefited from higher than projected revenue and I think what also happened in response to those PEGS, there was tremendous public outcry expressing concerns about some of those cutbacks,” DiNapoli told NY1.

However, he cautioned that Adams should be mindful that the city is spending too much and future projects, like state-mandated smaller class sizes, are not entirely accounted for - citing multi-billion dollar out-year spending gaps.

“But I wouldn’t be surprised if, moving forward, depending on economic trends, you may see another round of PEGs projected for the future. We have to see what the revenue picture looks like,” he said.

The city’s ongoing migrant crisis and future funding gaps are still reason for concern, according to the state comptroller’s office.