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Fiscal Health Index (FHI) 2026
March 14 , 2026
14 hrs 0 min
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- NITI Aayog released the Fiscal Health Index (FHI) 2026 to assess the financial health of Indian states.
- States account for nearly one-third of India’s government debt and deliver key public services, making systematic evaluation of finances important.
- Top-performing states in the Achiever category are Odisha, Goa, and Jharkhand, with high own-tax revenue, large capital outlay (4–5% of Gross State Domestic Product), and low fiscal deficit (below 3% of GSDP).
- Bottom states include Punjab, West Bengal, and Kerala due to higher non-developmental spending and weaker fiscal patterns.
- For North-Eastern and Himalayan states, Arunachal Pradesh and Uttarakhand rank highest, while Himachal Pradesh and Manipur rank low because of weak revenue and persistent fiscal stress.
- The FHI evaluates states on five key pillars: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability using data from the Comptroller and Auditor General (CAG).
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