Fiscal Health Index 2025: Odisha leads as Top-Performing State
New Delhi: In NITI Aayog’s recently released first Fiscal Health Index (FHI) report, Odisha, Chhattisgarh, Goa, and Jharkhand have been recognized as top-performing 'achievers' among the eighteen major states that significantly contribute to India's GDP.
The report titled ‘Fiscal Health Index 2025’ covers eighteen major states that drive the Indian economy in terms of their contribution to India’s GDP, demography, total public expenditure, revenues, and overall fiscal stability.
Among the top-performing states, Odisha, Chhattisgarh, Goa, Jharkhand, and Gujarat stand out for their strong fiscal management.
According to the report, Punjab, Andhra Pradesh, West Bengal, and Kerala were worst-performing states in Fiscal Health Index (FHI), each focusing significant fiscal challenges, news agency PTI reported.
The report which aims to evolve an understanding of the fiscal health of states in the country has listed Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, Karnataka under ‘aspirational’ category.
As per the report, released by Chairman of the 16th Finance Commission Arvind Panagariya, Odisha excels in fiscal health with the highest overall index score of 67.8.
It tops the debt index (99.0) and debt sustainability (64.0) rankings with better than average scores under quality of expenditure and revenue mobilization, the report said, adding that Odisha has maintained low fiscal deficits, a good debt profile, and an above average capital outlay/GSDP ratio, reports PTI.
While Kerala and Punjab struggle with low quality of expenditure and debt sustainibility, the report said West Bengal faces revenue mobilisation and debt index issues.
Andhra Pradesh has high fiscal deficit and Haryana has a poor debt profile, it said.
The data used to calculate the Fiscal Health Index (major variables and sub-components under each variable) is sourced from the Comptroller and Auditor General (CAG).
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