Odisha, Chhattisgarh, Goa Lead in NITI Aayog’s Fiscal Health Index

Odisha, Chhattisgarh, Goa, and Jharkhand have emerged as the top-performing states in NITI Aayog’s inaugural Fiscal Health Index (FHI) report, underscoring their robust fiscal management and stability. The report, titled ‘Fiscal Health Index 2025,’ was released on Friday and ranks states based on their fiscal performance during 2022-23.
The FHI assessed 18 major states contributing significantly to India’s GDP, public expenditure, and revenue generation. Odisha, Chhattisgarh, Goa, and Jharkhand, categorized as “achievers,” stood out for their fiscal discipline, effective revenue management, and sustained economic growth.
However, the report also highlighted significant challenges in states like Punjab, Andhra Pradesh, West Bengal, and Kerala, which were ranked among the worst performers. These states, listed under the “aspirational” category, are grappling with fiscal deficits, rising debt burdens, and constrained revenues.
The Fiscal Health Index aims to provide a comprehensive framework for evaluating the fiscal health of states, considering parameters like revenue generation, expenditure efficiency, and debt sustainability.
Key Highlights of the Report:
- Achievers: Odisha, Chhattisgarh, Goa, and Jharkhand.
- Aspirational States: Punjab, Andhra Pradesh, West Bengal, and Kerala.
- Focus: Economic contribution, public expenditure, fiscal stability, and revenue management.
The FHI serves as a vital tool for policymakers to identify areas requiring improvement and guide strategic interventions to strengthen state-level fiscal governance.
States listed under the “aspirational” category are expected to focus on addressing fiscal imbalances and enhancing resource mobilization to ensure long-term fiscal stability. The report provides insights to help states align with India’s broader economic goals while improving fiscal responsibility.