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News: The second annual edition of the Fiscal Health Index 2026 was released in New Delhi by NITI Aayog officials.
About Fiscal Health Index 2026
- It is a data-driven framework that provides a systematic and comparable assessment of the fiscal performance of Indian states.
- Released By: The Index was released by NITI Aayog.
- Categories: The Index classifies states into four tiers based on their fiscal performance.
- Achievers: These states show strong fiscal discipline, high own-tax revenues, low deficits, and manageable debt levels.
- Front Runners: These states maintain sound finances but fall short of the top tier on some indicators.
- Performers: These states show mixed results across different fiscal indicators.
- Aspirational: These states face significant fiscal stress with persistent deficits, high debt, and limited revenue capacity.
- Evaluation Pillars: The Index evaluates state finances on five key pillars.
- Quality of Expenditure
- Revenue Mobilisation
- Fiscal Prudence
- Debt Index
- Debt Sustainability
Key Findings:
- Top Performers: Odisha remains the top performer under the Achiever category, followed by Goa and Jharkhand.
- Fiscal Stress: Punjab, West Bengal, and Kerala show higher non-developmental expenditure and less sustainable fiscal patterns.
- The latest edition separately evaluates and ranks 10 North-Eastern and Himalayan states, apart from the major states.
- Top Performers: Arunachal Pradesh (ranked first) and Uttarakhand emerged as leading achievers.
- Lowest Performers: Himachal Pradesh and Manipur, mainly due to weak revenue generation and continuing fiscal stress.
