NITI Aayog released the second annual edition of the Fiscal Health Index (FHI) 2026, evaluating the fiscal performance of 18 major states and 10 North-Eastern and Himalayan states for the financial year 2023-24. The index uses audited data from the Comptroller and Auditor General of India (CAG) to generate comparable scores and rankings. Odisha emerged as the top-ranked state among major states for the second consecutive year, owing to strong fiscal management, high quality of expenditure, and robust debt sustainability. Rajasthan ranked 14th among 18 major states — indicating significant fiscal challenges relative to peers. Rajasthan showed improvement on the Quality of Expenditure metric, moving from Performer to Front Runner category, but overall fiscal health remains weak due to high debt levels and limited revenue mobilisation. The FHI 2026 assesses states on five pillars: (1) Quality of Expenditure — priority given to capital and social spending; (2) Revenue Mobilisation — own tax and non-tax revenue collection; (3) Fiscal Prudence — adherence to FRBM targets; (4) Debt Index — level of outstanding debt; and (5) Debt Sustainability — capacity to service debt without compromising growth. The 10-year trend analysis (FY 2014-15 to FY 2023-24) shows persistent fiscal stress in several large states. The index is important for RAS aspirants as it directly reflects Rajasthan's fiscal position, revenue-expenditure dynamics, and the role of CAG in public financial accountability.