Fiscal Health Index 2026: Odisha Tops Again, Check Top 10 Best Performing States in India

As per the latest Fiscal Health Index 2026 released by NITI Aayog. the state of Odisha emerging as the top performing state once again. This report evaluates the fiscal strength of states for FY 2023-24. Which is focusing on key indicators such as revenue, expenditure quality and debt sustainability. The Fiscal Health Index 2026 comes at a time when the states are account for nearly one third of India’s total public debt and it making fiscal discipline crucial.

Fiscal Health Index 2026: What It Measures

The Fiscal Health Index 2026 assesses the financial performance of Indian states using the structure framework.

It evaluates states across five key pillars.

These pillars include are,

  1. Quality of expenditure
  2. Revenue mobilization
  3. Fiscal prudence
  4. Debt index
  5. Debt sustainability

The index helps in understanding how efficiently states manage public finances and maintain long-term economic stability.

The higher score indicates the better fiscal management and stronger financial health.

Odisha Tops Fiscal Health Index 2026 Again

State of Odisha has retained its position as the best performing state in the Fiscal Health Index 2026,.

And it is continuing its status as an Achiever.

The state achieved a score of 73.1 and which is significantly ahead of other states.

The strong performance of Odisha is attributed to,

  • Efficient revenue mobilization (80.3 score)
  • Strong debt index (95.8 score)
  • Controlled fiscal deficits
  • Stable and sustainable financial management

The state’s consistent fiscal discipline has enabled it to maintain a strong financial position compared to others.

Top 10 Best Performing States in Fiscal Health Index 2026

The top 10 states in Fiscal Health Index 2026 showcase a mix of strong revenue generation and effective debt management.

Goa and Jharkhand secured the second and third positions respectively.

Rank State FHI Score
1 Odisha 73.1
2 Goa 54.7
3 Jharkhand 50.5
4 Gujarat 49.9
5 Maharashtra 45.0
6 Chhattisgarh 44.3
7 Telangana 44.3
8 Uttar Pradesh 41.9
9 Karnataka 41.7
10 Madhya Pradesh 37.8

These states have demonstrated relatively the strong fiscal performance compared to others.

Performance Trends Among Top States

The Fiscal Health Index 2026 revealed the interesting trends among top-performing states.

Goa and Jharkhand improved their rankings significantly and they moving into the top three positions from earlier categories.

Chhattisgarh state which was earlier ranked among the top achievers now it slipped to the sixth position.

States like Gujarat, Maharashtra and Telangana showed stable performance due to strong internal revenue and balanced debt levels.

States Showing Improvement in Fiscal Health

Some states have shown gradual improvement in their fiscal conditions.

Haryana moved up the significantly from 14th to 11th position, and it is reflecting better expenditure management and fiscal discipline.

Bihar ranked 12th and it is showing marginal recovery due to improvements in revenue surplus and expenditure quality.

Bottom States in Fiscal Health Index 2026

While some states performed well, others continue to face fiscal challenges.

Punjab, Andhra Pradesh, West Bengal and Kerala were ranked at the bottom of the Fiscal Health Index 2026 under the Aspirational category.

These states are facing,

  • High fiscal deficits
  • Slower revenue growth
  • Increasing financial strain

The report highlights the need for improved fiscal discipline and better revenue management in these regions.

Question

Q. Which state topped the Fiscal Health Index 2026?

A. Gujarat
B. Maharashtra
C. Odisha
D. Goa

Shivam

As a Content Executive Writer at Adda247, I am dedicated to helping students stay ahead in their competitive exam preparation by providing clear, engaging, and insightful coverage of both major and minor current affairs. With a keen focus on trends and developments that can be crucial for exams, researches and presents daily news in a way that equips aspirants with the knowledge and confidence they need to excel. Through well-crafted content, Its my duty to ensures that learners remain informed, prepared, and ready to tackle any current affairs-related questions in their exams.

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