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News: Niti Aayog recently launched the “Fiscal Health Index 2025” in New Delhi. The report ranked 18 major states for the year 2022-23.
About Fiscal Health Index (FHI)
- Annual Publication: The Fiscal Health Index report will be released every year.
- Focus on Fiscal Health: It will assess the fiscal health of Indian states.
- Data-Driven Insights: The report will provide insights based on data, guiding state-level policy decisions.
- Key Objectives:
- Enhance fiscal governance
- Boost economic resilience
- Ensure the overall stability of the nation.
Fiscal Health Index 2025
- Criteria for ranking: The report ranks states based on a composite fiscal index, which includes five key sub-indices:
- Quality of expenditure
- Revenue generation
- Fiscal discipline
- Debt levels
- Debt sustainability
- Best Performers– Odisha ranks first in fiscal health among 18 major states with a score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6).
- Worst Performers– Punjab, Andhra Pradesh, West Bengal, Kerala were the worst-performing States and listed under ‘aspirational‘ category.
- Other Categories:
- Front-runners– Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka
