The Fiscal Health Index (FHI) 2025, launched by NITI Aayog, provides a comprehensive assessment of the fiscal health of 18 major Indian states.

This annual publication aims to offer data-driven insights to inform state-level policy interventions, thereby enhancing overall fiscal governance, economic resilience, and national stability.

Key Findings of FHI 2025:

• Top Performing States: Odisha leads with the highest overall index score, excelling in both the Debt Index and Debt Sustainability rankings.
• Revenue Mobilization Leaders: Goa, Telangana, and Odisha are at the forefront in generating revenue from their own sources.
• Capital Expenditure Allocation: States categorized as ‘Achiever’ and ‘Front Runner’ allocate approximately 27% of their Developmental Expenditure to Capital Expenditure. In contrast, ‘Performer’ and ‘Aspirational’ states allocate around 10%.
• Debt Sustainability Concerns: States like West Bengal and Punjab are experiencing increasing debt burdens, raising concerns about their debt sustainability.