The Fiscal Health Index is an analytical tool designed by NITI Aayog to assess the fiscal health of Indian states.
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Fiscal Health Index-2025 released in January 2025 by NITI Aayog. Dr. Arvind Panagariya, chairman of the 16’th Finance Commission, launched the inaugural issue of NITI Aayog’s report titled “FISCAL HEALTH INDEX (FHI) 2025”.
Aim:
The aim of Fiscal Health Index-2025 is to guide policymaker to find the area where fiscal reform need and improve that area by adopting effective fiscal management strategies across the states.
Parameters:
The Fiscal Health Index-2025 calculated based on Five Major sub-indices : A. Quality of Expenditure, B. Revenue Mobilization, C. Fiscal Prudence, D. Debt Index and E. Debt Sustainability.
A. Quality of Expenditure have two Minor sub-indices – 1.Total Development Expenditure/Total Expenditure and 2.Total Capital Outlay/GSDP(Gross State Domestic Product)
B. Revenue Mobilization have two Minor sub-indices – 1. State Own Revenue/GSDP(Gross State Domestic Product) and 2.State Own Revenue/Total Expenditure
C. Fiscal Prudence have two Minor sub-indices – 1. Gross Fiscal Deficit/GSDP(Gross State Domestic Product) and 2. Revenue Deficit/GSDP(Gross State Domestic Product)
D. Debt Index have two Minor sub-indices – 1. Interest Payments/Revenue Receipts and 2. Outstanding Liabilities/GSDP(Gross State Domestic Product)
E. Debt Sustainability have one Minor sub-indices that is Growth Rate of GSDP – Growth Rate of Interest Payments
Results :
| STATES | RANK | FHI Score |
| Odisha | 1 | 67.8 |
| Chhattisgarh | 2 | 55.2 |
| Goa | 3 | 53.6 |
| Jharkhand | 4 | 51.6 |
| Gujrat | 5 | 50.5 |
| Maharashtra | 6 | 50.3 |
| Uttar Pradesh | 7 | 45.9 |
| Telangana | 8 | 43.6 |
| Madhya Pradesh | 9 | 42.2 |
| Karnataka | 10 | 40.8 |
| Tamil Nadu | 11 | 29.2 |
| Rajasthan | 12 | 28.6 |
| Bihar | 13 | 27.8 |
| Haryana | 14 | 27.4 |
| Kerala | 15 | 25.4 |
| West Bengal | 16 | 21.8 |
| Andhra Pradesh | 17 | 20.9 |
| Punjab | 18 | 10.7 |
Fact of FHI-2025:
- Odisha ranked first in Fiscal Health Index and overall FHI score of Odisha is 67.8 . Chhattisgarh ranked second with FHI score 55.2 and Goa third(Goa’s score-53.6)
- Fiscal Health Index analysis the fiscal health of eighteen major Indian States for 2022-23.
- To calculate the overall FHI score of eighteen major Indian States, the repot used the data from Comptroller and Auditor General of India (CAG).
- FHI report divide all the states in Four category – 1. Achiever 2. Front Runner 3. Performer 4. Aspirational
| Achiever | Front Runner | Performer | Aspirational |
| 1.Odisha 2.Chhattisgarh 3.Goa 4.Jharkhand 5.Gujrat | 1.Maharashtra 2.Uttar Pradesh 3.Telangana 4.Madhya Pradesh 5.Karnataka | 1.Tamil Nadu 2.Rajasthan 3.Bihar 4.Haryana | 1.Kerala 2.West Bengal 3.Andhra Pradesh 4.Punjab |