The second edition of Fiscal Health Index
2026 released by NITI Aayog
¨
The second edition of
Fiscal Health Index 2026 released by NITI Aayog.
¨
On 11 March, the second
annual edition of the Fiscal Health Index (FHI) 2026 has been released by NITI Aayog
in New Delhi.
¨
The report was released
by NITI Aayog Vice-Chairman Suman Bery and Chief Executive Officer Nidhi
Chhibber in the presence of senior officials.
¨
The Fiscal Health Index
has been developed as a data-driven framework to assess the fiscal performance
and financial sustainability of Indian states.
¨
The Index has been
designed to evaluate fiscal soundness, guide policy reforms and promote
evidence-based fiscal policymaking across states.
¨
The report highlights
that state governments play a crucial role in India’s fiscal structure,
accounting for nearly one-third of the country’s general government debt.
¨
In its second edition,
the Index has been expanded to include the ten North-Eastern and Himalayan
states, making the assessment more inclusive and representative.
¨
Due to structural
differences across regions, North-Eastern and Himalayan states have been
evaluated and ranked separately from the major states.
¨
The analysis indicates
significant variations in fiscal outcomes among states, with many major states
recording moderated Fiscal Health Index scores during 2023–24.
¨ The report recommends strengthening revenue mobilisation, improving state tax capacity, rationalising committed expenditures and enhancing the quality of capital expenditure.
¨ The Fiscal Health Index 2026 provides a transparent and comprehensive benchmarking framework that will assist policymakers, researchers and stakeholders in improving fiscal governance and ensuring long-term macroeconomic stability.
