On 12 March 2026, NITI Aayog released the Fiscal Health Index 2026. The index gives an exam-relevant basis for understanding the fiscal position of states for financial year 2023-24. It assessed 18 General Category States and 10 North-Eastern and Himalayan States separately. The five pillars were Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability.
Among major states, Odisha ranked first with a score of 73.1 and topped the list for the second consecutive year. It was followed by Goa, Jharkhand, Gujarat, Maharashtra, and Chhattisgarh. Rajasthan scored 27.6, ranked 14th overall, and remained in the Performer category. Rajasthan was not a Front Runner in the overall index. Its improvement to Front Runner was limited to the Quality of Expenditure pillar, where Rajasthan scored 43.7 and ranked 11th.
For Rajasthan-focused preparation, the core takeaway is fiscal stress. The state's fiscal health was described as being under pressure due to rising deficits, high debt levels, and limited space for developmental spending. Interest payments, salaries, and pensions absorb a significant part of revenue receipts. The Debt-to-GSDP ratio remained persistently above 35%. The topic links directly with fiscal federalism, state budgets, debt management, and fiscal responsibility and budget management law in static economy preparation. For RAS and UPSC, prelims may test the index, rankings, and pillars, while mains answers can use it to discuss state finances, expenditure quality, and development priorities. Among North-Eastern and Himalayan States, Arunachal Pradesh ranked first, so the two separate ranking groups are important.