NITI Aayog released the second edition of the Fiscal Health Index (FHI) 2026 in March 2026, evaluating the fiscal performance of Indian states for the financial year 2023-24. The index was released by NITI Aayog Vice-Chairman Suman Bery and CEO Nidhi Chhibber in New Delhi. The FHI 2026 is built on five pillars: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability. These pillars are assessed using data sourced from the Comptroller and Auditor General (CAG) of India, lending the index credibility and objectivity. In a significant development, Rajasthan has been upgraded from the Performer category to the Front Runner category, alongside Gujarat and Andhra Pradesh. This improvement signals enhanced fiscal discipline and better revenue mobilisation by the Rajasthan government under Chief Minister Bhajanlal Sharma. The second edition expands its scope by including 10 North Eastern and Himalayan states in addition to the 18 General Category States covered in the first edition. Odisha, Chhattisgarh and Madhya Pradesh are among the top performers in the General Category. The index identifies state-specific challenges and provides policy recommendations for improving fiscal sustainability. Poor performing states are highlighted for high debt burdens, unsustainable subsidies, and inadequate own-source revenue. The FHI is a critical tool for cooperative federalism and is expected to be used by the Finance Commission and central ministries for allocation decisions. For Rajasthan, the improvement reflects reduction in revenue deficit, better capital expenditure quality, and improved debt management.