Fiscal Health Index 2025
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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.

Fiscal Health Index 2025
Source- The Hindu

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 PerformersOdisha 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

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