Source: PIB
Context: The Fiscal Health Index (FHI) 2025, launched by NITI Aayog provides an in-depth analysis of the fiscal health of 18 major Indian states.
About Fiscal Health Index 2025:
- Developed by: NITI Aayog, with data sourced from the Comptroller and Auditor General (CAG).
- Base Year: 2022-23 fiscal data is the reference year for rankings and analysis.
- Aim: To evaluate fiscal health, highlight interstate disparities, and encourage targeted interventions for improving fiscal performance and governance.
- Criteria used: The FHI evaluates states across five sub-indices:
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- Quality of Expenditure: Efficiency in capital and social sector spending.
- Revenue Mobilization: States’ ability to generate revenue from taxes and other sources.
- Fiscal Prudence: Adherence to fiscal deficit targets and financial management.
- Debt Index: States’ total debt burden.
- Debt Sustainability: Debt-to-GSDP ratio and interest burden on revenue.
- Key Features:
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- Tracks fiscal trends from 2014-15 to 2022-23.
- Focuses on 18 major states driving India’s economy.
- Provides state-specific insights for policy interventions.
- Highlights top achievers and aspirational states to promote healthy competition.
- Aligns with India’s vision for Viksit Bharat @2047.
- Top 3 Achievers (2022-23):
| Rank | State | Category | FHI Score |
| 1 | Odisha | Achievers | 67.8 |
| 2 | Chhattisgarh | Achievers | 55.2 |
| 3 | Goa | Achievers | 53.6 |
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