NITI Aayog Launches Fiscal Health Index 2026

• 14 Mar 2026

On 11th March 2026, NITI Aayog released the second annual edition of the “Fiscal Health Index 2026” in New Delhi.

What is Fiscal Health Index?

• The Fiscal Health Index provides a comprehensive and comparable assessment of the fiscal performance of Indian states.
• The Index has been designed as a data-driven framework to evaluate fiscal soundness, guide reforms, and promote evidence-based fiscal policymaking across states.
• While the first edition assessed the fiscal performance of 18 major states, this edition includes the 10 North-Eastern and Himalayan states, making the Index more inclusive and representative of India’s fiscal diversity.

Five Pillars of Fiscal Health Index

1. Quality of Expenditure: Measures the share of developmental spending relative to non-developmental expenditure.
2. Revenue Mobilisation: Evaluates a state’s ability to independently generate tax & non-tax revenues.
3. Fiscal Prudence: Monitors fiscal and revenue deficits relative to Gross State Domestic Product (GSDP).
4. Debt Index: Analyses the size, composition, and interest burden of outstanding public liabilities.
5. Debt Sustainability: Assesses whether GSDP growth exceeds interest payments, indicating manageable long-term debt.

Major Findings

Major States

• Top Performers: Odisha remains the top performer under the Achiever category, followed by Goa and Jharkhand.
• Fiscal Stress: Punjab, West Bengal, and Kerala show higher non-developmental expenditure and less sustainable fiscal patterns.

North-Eastern and Himalayan States

• Top Performers: Arunachal Pradesh (ranked first) and Uttarakhand emerged as leading achievers.
• Lowest Performers: Himachal Pradesh and Manipur, mainly due to weak revenue generation and continuing fiscal stress.