The Fiscal Health Index (FHI) initiative by NITI Aayog aims to evolve an understanding of the fiscal health of states in India.
Key Highlights
- The FHI analysis covers 18 major states that drive the Indian economy in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability.
- The composite Fiscal Health Index has been developed using data from the Comptroller and Auditor General of India (CAG), covering the Financial Year 2022-23.
- Odisha leads the 2025 rankings with a score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6).
- The index is based on five key fiscal parameters:
- Tax Buoyancy
- Debt-to-GSDP Ratio
- Expenditure Management & Prioritization
- Debt Management
- Fiscal Deficit Management & Overall Sustainability
Why It Matters?
- Helps benchmark states against best fiscal practices.
- Assists policymakers in better financial planning.
- Uses CAG data from FY 2022-23 for objective evaluation.
(Source: PIB)
