Reports & IndicesSkim2025-01-24

NITI Aayog Launches Inaugural Fiscal Health Index

What Happened

NITI Aayog released the inaugural Fiscal Health Index (FHI) 2025 to evaluate the fiscal stability of 18 major Indian states using FY23 data. States were ranked across five parameters including debt sustainability and revenue mobilisation, with Odisha, Chhattisgarh, and Goa emerging as the top performers.

Why It Matters

The index introduces a standardised framework for competitive federalism, encouraging states to maintain fiscal prudence and long-term debt sustainability for national economic stability.

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