Sansad TV

Perspective: Fiscal Health Index | 13 March, 2026

Sansad Tv

At a time when global public finances are under mounting pressure, the sustainability of sub-national finances has assumed increasing importance. In this context, robust fiscal management at all levels of government has become essential to maintaining macroeconomic stability and supporting long-term development. In India, state governments play a critical role in the country’s fiscal architecture. States now account for nearly one-third of India’s general government debt, making their fiscal trajectory central to national fiscal sustainability. Given the scale of state expenditure responsibilities and their role in delivering key public services, systematic assessment of state finances is essential to ensure fiscal discipline, efficient resource allocation, and long-term macroeconomic stability. To enable benchmarking across states and help them identify areas for improvement, the NITI Aayog released the second annual edition of the “Fiscal Health Index 2026”. The index provides a comprehensive and comparable assessment of the fiscal performance of Indian states. It has been designed as a data-driven framework to evaluate fiscal soundness, guide reforms, and promote evidence-based fiscal policy making across states. Among the major states, Odisha remains the top performer, improving its score over the previous year. Goa and Jharkhand feature among the top Achiever states. Among the front-runner states are Gujarat, Maharashtra, Chhattisgarh, Telangana, Uttar Pradesh and Karnataka. The Performer states include Madhya Pradesh, Haryana, Bihar, Tamil Nadu and Rajasthan. West Bengal, Kerala, Andhra Pradesh and Punjab are in the aspirational states’ group. The Northeastern states and the Himalayan states have been ranked separately from the major states. Arunachal Pradesh and Uttarakhand are among the achievers. Assam, Meghalaya, Mizoram, Sikkim, Tripura have been classified as Performers while the Aspirational group includes Himachal Pradesh, Manipur and Nagaland.The report highlights several policy priorities for strengthening fiscal health across states. To understand more about the findings of the report, the methodology behind the index, and what it means for India’s fiscal future,

Guests:- 1. Dr. Pravakar Sahoo, Program Director, Economics and Finance, NITI Aayog