NITI Aayog released its second annual Fiscal Health Index (FHI) on March 11, 2026. CEO Nidhi Chhibber unveiled the report, which evaluates the fiscal health of 28 Indian states — 18 major states and 10 special category states (North-Eastern and Himalayan states) — for the financial year 2023-24.

The FHI assesses states across five key pillars: (1) Revenue Mobilisation, which measures a state's ability to generate its own tax and non-tax revenues; (2) Fiscal Prudence, which examines fiscal deficit and expenditure management; (3) Debt Index, which tracks the overall debt stock relative to GSDP; (4) Debt Sustainability, which assesses the trajectory and manageability of debt; and (5) Quality of Expenditure, which evaluates the composition and productivity of government spending.

Among major states, Odisha emerged as the top performer, reflecting its strong revenue management and low fiscal deficit. In contrast, Punjab, Andhra Pradesh, West Bengal, and Kerala were identified as states under significant fiscal stress, with concerns around high debt levels and unsustainable expenditure patterns. For the North-Eastern and Himalayan special category states, Arunachal Pradesh topped the rankings.

The index aims to promote fiscal discipline, incentivise states to improve their financial governance, and provide a comparative benchmarking tool. It serves as a reference for policymakers, analysts, and aspirants studying Indian public finance. The FHI underscores India's broader push towards cooperative fiscal federalism and sustainable state finances.