NITI Aayog has released the Fiscal Health Index (FHI) 2026, with Odisha emerging as the top-performing state once again. The index evaluates the fiscal strength of Indian states for the financial year 2023–24, focusing on indicators such as revenue generation, expenditure quality, fiscal prudence, and debt sustainability. The report comes at a time when states account for nearly one-third of India’s total public debt, making fiscal discipline increasingly important.
According to the index, Odisha secured the highest score of 73.1, significantly ahead of other states. Its strong performance was driven by efficient revenue mobilisation, a strong debt index, controlled fiscal deficits, and stable financial management. The state achieved particularly high scores in revenue mobilisation and debt management, reinforcing its reputation for sound fiscal governance.
The top three positions in the Fiscal Health Index were held by Odisha, Goa, and Jharkhand, followed by Gujarat and Maharashtra. Other states in the top ten include Chhattisgarh, Telangana, Uttar Pradesh, Karnataka, and Madhya Pradesh, reflecting relatively strong fiscal management.
However, the report also highlighted fiscal challenges in some states. Punjab, Andhra Pradesh, West Bengal, and Kerala ranked at the bottom of the index due to high fiscal deficits, slower revenue growth, and increasing financial pressure.
The Fiscal Health Index assesses states across five key pillars—quality of expenditure, revenue mobilisation, fiscal prudence, debt index, and debt sustainability—helping policymakers understand how effectively states manage public finances and maintain long-term economic stability.
