The second edition of Fiscal Health Index 2026 released by NITI Aayog

Current Context: On 11 March 2026, NITI Aayog released the second edition of the Fiscal Health Index (FHI) in New Delhi.

• It was launched by Vice Chairman Suman Bery, in the presence of CEO Nidhi Chhibber.
• The index assesses the fiscal performance of states for FY 2023‑24 using verified data from the Comptroller and Auditor General (CAG).
• Coverage expanded from 18 major states to 28 states, including 10 North‑Eastern & Himalayan states ranked separately.
• States were evaluated on five pillars – Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability.
• Odisha retained 1st place, followed by Goa (2nd) and Jharkhand (3rd), while Punjab ranked last with a score of 12.4/100.
• The report stressed that state debt forms nearly one‑third of India’s general government debt, urging adherence to FRBM norms, tax base widening (GST), and stronger own‑revenue capacity.

Question:

Q.1 Which state ranked first in the Fiscal Health Index 2026?
a) Odisha
b) Jharkhand
c) Goa
d) Gujarat

Answer: a) Odisha retained the top position in the Fiscal Health Index due to strong fiscal discipline, better revenue mobilisation, and efficient expenditure management.