NITI Aayog has released the second edition of its Fiscal Health Index (FHI) covering FY 2023-24 data sourced from the Comptroller and Auditor General (CAG) of India. The index ranks 18 general category states and 10 special category states from North-Eastern and Himalayan regions on their overall fiscal health.\n\nThe FHI is built on five pillars: (1) Quality of Expenditure — assessing whether spending is directed toward productive and capital-intensive purposes; (2) Revenue Mobilisation — measuring states' capacity to generate own revenues; (3) Fiscal Prudence — evaluating deficit management and fiscal discipline; (4) Debt Index — assessing the overall debt burden relative to the state's economy; and (5) Debt Sustainability — examining whether the trajectory of borrowing is sustainable over time.\n\nOdisha has topped the overall ranking among general category states for the second consecutive edition, demonstrating consistent excellence in fiscal management, particularly in capital expenditure and debt sustainability.\n\nFor Rajasthan, the second edition marks a significant upgrade: the state has been elevated from the "Performer" category to the "Front Runner" category on the Quality of Expenditure pillar. This reflects improved direction of state government spending towards capital formation, infrastructure, and productive public services — a meaningful improvement in fiscal governance.\n\nThe index covers 18 general category states and 10 North-Eastern and Himalayan states, providing a comprehensive comparative framework for assessing sub-national fiscal health in India. It is intended to serve as a policy tool for states to benchmark their fiscal performance and identify areas for improvement.