NITI Aayog Releases Fiscal Health Index 2026; Odisha Tops Among Major States for Second Consecutive Year
NITI Aayog's Fiscal Health Index 2026: Odisha ranked first (73.1) for second consecutive year; Punjab, Kerala, WB face fiscal stress.
niti.gov.in
Key Points for RAS
- NITI Aayog released the second annual Fiscal Health Index (FHI) 2026 for FY 2023-24.
- Odisha topped among major states for the second consecutive year with a score of 73.1, followed by Goa (Rank 2) and Jharkhand (Rank 3).
- The Index assesses five pillars: expenditure quality, revenue mobilisation, fiscal prudence, debt index, and debt sustainability using CAG data.
- Punjab, Kerala, and West Bengal face persistent fiscal stress from rising debt and high deficits.
- State finances account for roughly one-third of India's general government debt.
- Odisha's fiscal deficit is within the 3% FRBM norm with debt-to-GSDP ratio reduced from over 23% (2019-20) to around 14-15%.
NITI Aayog released the second annual Fiscal Health Index (FHI) 2026, evaluating state fiscal performance for FY 2023-24. Odisha topped among major states for the second consecutive year (Score: 73.1), followed by Goa (Rank 2) and Jharkhand (Rank 3) in the Achiever category. The Index assesses five pillars: expenditure quality, revenue mobilisation, fiscal prudence, debt index and debt sustainability, using data from the Comptroller and Auditor General (CAG). States like Punjab, Kerala and West Bengal face persistent fiscal stress from rising debt and high deficits. State finances account for roughly one-third of India's general government debt. Odisha's success is linked to its fiscal deficit within the 3% FRBM norm and significant reduction in debt-to-GSDP ratio from over 23% in 2019-20 to around 14-15%.
Frequently Asked Questions
1 Which state topped NITI Aayog Fiscal Health Index 2026?
Odisha topped the NITI Aayog Fiscal Health Index (FHI) 2026 for the second consecutive year (score: 73.1). It was followed by Goa (Rank 2) and Jharkhand (Rank 3) in the Achiever category. Among NE/Himalayan states, Arunachal Pradesh ranked first.
2 What are the five pillars of NITI Aayog Fiscal Health Index 2026?
The Fiscal Health Index 2026 evaluates states on five pillars:
- Quality of Expenditure
- Revenue Mobilisation
- Fiscal Prudence
- Debt Index
- Debt Sustainability
States are ranked as Achiever, Front Runner, Performer, or Aspirational.
3 What was Rajasthan's performance in NITI Aayog Fiscal Health Index 2026?
Rajasthan improved from Performer to Front Runner category in the NITI Aayog Fiscal Health Index 2026. Despite the improvement, Rajasthan still appeared among bottom performers alongside Tamil Nadu, Kerala, West Bengal, AP, and Punjab.
4 Which states were bottom performers in NITI Aayog Fiscal Health Index 2026?
Bottom performers in NITI Aayog Fiscal Health Index 2026 were Tamil Nadu, Rajasthan, Kerala, West Bengal, Andhra Pradesh, and Punjab. Odisha topped for the second year (score 73.1) and Arunachal Pradesh led NE/Himalayan states.
5 How many states did NITI Aayog evaluate in the Fiscal Health Index 2026?
NITI Aayog Fiscal Health Index 2026 (second edition) evaluated 18 General Category States and 10 North-Eastern and Himalayan States across 5 pillars for FY 2023–24. Odisha topped major states; Arunachal Pradesh topped NE/Himalayan states.
Syllabus Topics
Subjects