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%.
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.
Key facts
- 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%.
Mains angle
Q: NITI Aayog's Fiscal Health Index 2026 assessed state fiscal performance across five pillars. Analyse Odisha's top performance and discuss the challenges facing fiscally stressed states.
Answer (50 words):
NITI Aayog's second Fiscal Health Index 2026, using CAG data for FY 2023-24, ranked Odisha first (Score 73.1) for the second consecutive year, followed by Goa and Jharkhand. Five pillars included expenditure quality, revenue mobilisation, fiscal prudence, debt index, and sustainability. Punjab, Kerala, and West Bengal face persistent fiscal stress.
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Source: NITI Aayog
Frequently asked questions
What period did the second annual Fiscal Health Index 2026 evaluate?
NITI Aayog released the second annual Fiscal Health Index 2026 to evaluate state fiscal performance for FY 2023-24. The Index focused on state fiscal performance.
Which states topped the major-state ranking in the Fiscal Health Index 2026?
Odisha topped among major states for the second consecutive year with a score of 73.1. Goa ranked 2nd and Jharkhand ranked 3rd in the Achiever category.
What pillars and data source did the Fiscal Health Index 2026 use?
The Index assessed expenditure quality, revenue mobilisation, fiscal prudence, debt index, and debt sustainability. It used data from the Comptroller and Auditor General.
What fiscal factors were linked to Odisha's success in the Index?
Odisha's success was linked to its fiscal deficit staying within the 3% FRBM norm. It was also linked to a significant reduction in debt-to-GSDP ratio from over 23% in 2019-20 to around 14-15%.
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