Fiscal Health Index 2025: The NITI Aayog has recently released its first Fiscal Health Index (FHI).
o Achievers: Odisha, Chhattisgarh, Goa, Jharkhand.
ü Odisha topped with the highest overall index score of 67.8.
o Report Coverage: Covers 18 major States contributing significantly to India's GDP, demography, public expenditure, revenues, and fiscal stability.
o Achievers: Mineral-rich States with high capital outlay and revenue surplus.
o Front-Runners: Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, Karnataka.
o Performers: Tamil Nadu, Bihar, Rajasthan, Haryana.
o Aspirational: Punjab, Andhra Pradesh, West Bengal, Kerala (facing fiscal challenges).
o Top Achievers: High capital outlay (up to 4% of GSDP), effective non-tax revenue mobilisation, and low interest payments (up to 7% of revenue receipts).
o Front-Runners: High developmental expenditure (up to 73%), consistent tax revenue growth, and balanced fiscal management with debt-to-GSDP ratio of 24%.
o Aspirational States: Struggling with fiscal and revenue deficit targets and Low revenue mobilisation, high debt burden, and poor debt sustainability.
o Odisha: Tops debt index (99.0) and debt sustainability (64.0), maintains low fiscal deficits, strong debt profile, and high capital outlay/GSDP ratio.
o Kerala and Punjab: Low quality of expenditure and poor debt sustainability.
o West Bengal: Faces revenue mobilisation and debt index issues.
o Andhra Pradesh: High fiscal deficit.
o Haryana: Poor debt profile.
Refine your answer writing skills and elevate your UPSC preparation with personalized support and expert feedback.
Fill out the form to get started with the program or any other enquiries !