NITI Aayog Unveils Fiscal Health Index 2025 in New Delhi
On January 24, 2025, NITI Aayog introduced the inaugural “Fiscal Health Index (FHI) 2025” in New Delhi. This comprehensive report evaluates the fiscal health of 18 major Indian states, aiming to guide policy reforms for sustainable and resilient economic growth.
Top-Ranked States: Odisha leads with a cumulative score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6). These states excel in revenue mobilization, expenditure management, and debt sustainability.
Areas of Improvement: Jharkhand has shown progress in fiscal prudence and debt sustainability. In contrast, Karnataka faces challenges due to weaker performance in expenditure quality and debt management.
Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, emphasized the importance of states following a stable fiscal path for balanced regional development and long-term sustainability. He noted that the FHI offers a systematic approach to measuring state-level fiscal performance, providing valuable insights into broader fiscal trends.
Shri Suman Bery, Vice Chairman of NITI Aayog, highlighted that the FHI is not merely a ranking but a tool designed to assess and improve the fiscal health of states. It provides a framework to evaluate the financial well-being of state economies through key fiscal indicators.
Shri B.V.R. Subrahmanyam, CEO of NITI Aayog, stated that the FHI report will be instrumental in helping policymakers make informed decisions. He noted that the report provides an objective picture of the fiscal landscape across states and offers actionable insights for strengthening fiscal resilience and ensuring sustainable economic development.
The introduction of the FHI aligns with India’s broader vision of achieving “Viksit Bharat @2047,” emphasizing the pivotal role of fiscal discipline at the state level in the nation’s economic transformation. By focusing on major fiscal indicators, the FHI encourages states to align their fiscal strategies with national objectives, promoting healthy competition among states.
| Key Point | Details |
|---|---|
| Why in News | NITI Aayog launched the “Fiscal Health Index 2025” on January 24, 2025, in New Delhi, evaluating the fiscal performance of 18 Indian states. Odisha ranked first, followed by Chhattisgarh and Goa. |
| Top-Ranked States | Odisha (67.8), Chhattisgarh (55.2), Goa (53.6) |
| States with Challenges | Karnataka faced issues with expenditure quality and debt management. |
| Odisha (Static Data) | CM: Mohan Charan Majhi ; Capital: Bhubaneswar |
| Purpose of Index | Assesses revenue mobilization, expenditure management, and debt sustainability to guide policy reforms for economic growth. |
| Framework Alignment | Supports “Viksit Bharat @2047” vision for sustainable and balanced regional development. |
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