- Odisha, Chhattisgarh, and Goa are among the top performing states in NITI Aayog’s Fiscal Health Index.
- The first Fiscal Health Index (FHI) report, released by NITI Aayog on January 24, 2025, has listed Odisha, Chhattisgarh, Goa, and Jharkhand as top-performing ‘achievers’ among the States.
- The report titled ‘Fiscal Health Index 2025’ ranked states for 2022–23.
- It covers 18 major states that drive the Indian economy in terms of their contribution to India’s GDP, demographics, total public expenditure, revenue, and overall fiscal sustainability.
- According to the report, Punjab, Andhra Pradesh, West Bengal, and Kerala were the worst performing states in the Fiscal Health Index (FHI).
- The report listed them in the ‘aspirational’ category.
- The aim of the report is to develop an understanding of the fiscal health of the states in the country and has listed Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka in the ‘Front Runners’ category.
- Tamil Nadu, Bihar, Rajasthan, and Haryana were placed in the category of ‘Performers’.
- According to the report released by 16th Finance Commission Chairman Arvind Panagariya, Odisha has excelled in fiscal health with the highest composite index score of 67.8.
The report provides a comprehensive assessment of the fiscal health of 18 major States, based on five key sub-indices: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability, along with insights into state-specific challenges and areas for improvement