Fiscal Health Index (FHI) 2025
Kartavya Desk Staff
Source: PIB
Context: The Fiscal Health Index (FHI) 2025, launched by NITI Aayog provides an in-depth analysis of the fiscal health of 18 major Indian states.
About Fiscal Health Index 2025:
• Developed by: NITI Aayog, with data sourced from the Comptroller and Auditor General (CAG).
• Base Year: 2022-23 fiscal data is the reference year for rankings and analysis.
• Aim: To evaluate fiscal health, highlight interstate disparities, and encourage targeted interventions for improving fiscal performance and governance.
• Criteria used: The FHI evaluates states across five sub-indices:
• Quality of Expenditure: Efficiency in capital and social sector spending. Revenue Mobilization: States’ ability to generate revenue from taxes and other sources. Fiscal Prudence: Adherence to fiscal deficit targets and financial management. Debt Index: States’ total debt burden. Debt Sustainability: Debt-to-GSDP ratio and interest burden on revenue.
• Quality of Expenditure: Efficiency in capital and social sector spending.
• Revenue Mobilization: States’ ability to generate revenue from taxes and other sources.
• Fiscal Prudence: Adherence to fiscal deficit targets and financial management.
• Debt Index: States’ total debt burden.
• Debt Sustainability: Debt-to-GSDP ratio and interest burden on revenue.
• Key Features:
• Tracks fiscal trends from 2014-15 to 2022-23. Focuses on 18 major states driving India’s economy. Provides state-specific insights for policy interventions. Highlights top achievers and aspirational states to promote healthy competition. Aligns with India’s vision for Viksit Bharat @2047.
• Tracks fiscal trends from 2014-15 to 2022-23.
• Focuses on 18 major states driving India’s economy.
• Provides state-specific insights for policy interventions.
• Highlights top achievers and aspirational states to promote healthy competition.
• Aligns with India’s vision for Viksit Bharat @2047.
• Top 3 Achievers (2022-23):
Rank | State | Category | FHI Score
1 | Odisha | Achievers | 67.8
2 | Chhattisgarh | Achievers | 55.2
3 | Goa | Achievers | 53.6
Insta links:
• Niti Report