NITI Aayog's 2026 Fiscal Health Index (FHI) for 2023-24
The NITI Aayog has released the 2026 Fiscal Health Index for the fiscal year 2023-24, evaluating the fiscal health of Indian states.
Top Performing States
- Odisha
- Goa
- Jharkhand
- Gujarat
- Maharashtra
- Chhattisgarh
- Telangana
- Uttar Pradesh
- Karnataka
- Madhya Pradesh
Previous Rankings
In the 2025 Index, which assessed fiscal conditions for 2022-23, Odisha led followed by:
- Chhattisgarh
- Goa
- Jharkhand
- Gujarat
Lowest Performing States
- Rajasthan
- Kerala
- West Bengal
- Andhra Pradesh
- Punjab
North-Eastern and Himalayan States
- Top performer: Arunachal Pradesh
- Followed by Uttarakhand, Tripura, Meghalaya, Assam, and Mizoram
Recommendations
The Aayog suggests states should:
- Increase allocations for infrastructure, health, and education.
- Broaden GST and state tax bases through better compliance and administration.
- Maintain fiscal deficits within FRBM norms through efficient expenditure management.
- Improve debt management and reduce reliance on costly borrowings.
Importance of State Fiscal Performance
States account for approximately two-thirds of public spending and one-third of total revenue, making their fiscal performance crucial for national economic stability.
Index Components
- Quality of expenditure
- Revenue mobilisation
- Fiscal prudence
- Debt index
- Debt sustainability
Rationale for Separate Rankings
North-Eastern and Himalayan states require tailored assessments due to:
- Limited own tax revenue base and sparse economic activity
- High cost of public service delivery due to terrain
- Greater dependence on the Centre
- Higher debt levels and larger development and capital spending needs
