New Delhi: Mineral-rich Odisha, Chhattisgarh, Goa and Jharkhand have emerged as top-performing ‘achievers’ among the states listed in NITI Aayog’s first Fiscal Health Index (FHI) report released Friday.
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.
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.
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 ‘front-runners’ category.
As per report, released by Chairman of 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.
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).
PTI
