Odisha, Chhattisgarh, and Goa Recognised as Top Performers in NITI Aayog's Fiscal Health Index 2025

Odisha, Chhattisgarh, Goa, and Jharkhand have been identified as leading states in the NITI Aayog's inaugural Fiscal Health Index (FHI) report. This report, titled "Fiscal Health Index 2025," evaluates the fiscal health of 18 major Indian states based on their GDP contribution, demographics, public spending, revenues, and fiscal stability.

Representative image

The report categorises Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka as front-runners. These states demonstrate strong fiscal health compared to others. Odisha stands out with an overall index score of 67.8, excelling in debt index and debt sustainability rankings.

Fiscal Challenges for Some States

Poor fiscal performance is noted in Punjab, Andhra Pradesh, West Bengal, and Kerala. These states face significant fiscal challenges according to the FHI report. Kerala and Punjab struggle with low expenditure quality and debt sustainability. West Bengal has issues with revenue mobilisation and its debt index.

Andhra Pradesh is grappling with a high fiscal deficit. Haryana's debt profile is also concerning. The data for the Fiscal Health Index is sourced from the Comptroller and Auditor General (CAG), ensuring accuracy in evaluating these variables.

Odisha's Strong Fiscal Performance

Odisha leads in fiscal health due to its impressive scores in various categories. It achieves a top debt index score of 99.0 and a debt sustainability score of 64.0. The state maintains low fiscal deficits and a robust debt profile while achieving an above-average capital outlay to GSDP ratio.

The report highlights Odisha's effective revenue mobilisation and quality expenditure management. These factors contribute significantly to its strong fiscal standing among Indian states.

The FHI report aims to provide insights into the fiscal health of Indian states. By identifying strengths and weaknesses, it helps policymakers address fiscal challenges effectively.