Odisha, Chhattisgarh, Goa amongst top-performing States in NITI Aayog’s fiscal well being index

The report titled ‘Fiscal Well being Index 2025’ ranked States for 2022-23, masking 18 main States that drive the Indian financial system when it comes to their contribution to India’s GDP, demography, whole public expenditure, revenues, and total fiscal stability. Photograph: X@NITIAayog

Mineral-rich Odisha, Chhattisgarh, Goa and Jharkhand have emerged as top-performing ‘achievers’ among the many States listed in NITI Aayog’s first Fiscal Well being Index (FHI) report launched on Friday (January 24, 2025).

The report titled ‘Fiscal Well being Index 2025’ ranked States for 2022-23, masking 18 main States that drive the Indian financial system when it comes to their contribution to India’s GDP, demography, whole public expenditure, revenues, and total fiscal stability.

In response to the report, Punjab, Andhra Pradesh, West Bengal, and Kerala had been the worst-performing States in Fiscal Well being Index (FHI), every focusing vital fiscal challenges, and listed underneath ‘aspirational’ class.

The report goals to evolve an understanding of the fiscal well being of States within the nation and it has listed Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, Karnataka underneath ‘front-runners’ class.

Tamil Nadu, Bihar, Rajasthan and Haryana had been categorized as performers.

As per the report, launched by sixteenth Finance Fee Chairman Arvind Panagariya, Odisha excelled in fiscal well being with the very best total index rating of 67.8.

Referring to prime 5 achiever States, NITI Aayog mentioned these States have increased capital outlay of as much as 4% of Gross State Home Product (GSDP), efficient mobilisation of non-tax income, are income surplus and have low curiosity funds, which is as much as 7% of income receipts.

Analysing the efficiency of frontrunners, the federal government think-tank mentioned these States reported excessive whole developmental expenditure as much as 73%, witnessed constant progress in personal tax income, had balanced fiscal administration and improved debt sustainability with debt-to-GSDP ratio of 24%.

The report famous that the aspirational States of Kerala, West Bengal, Andhra Pradesh and Punjab are struggling to fulfill the fiscal and income deficit targets, have low income mobilisation, witnessing a rising debt burden with debt sustainability a priority in these States.

As per the report, Odisha tops the debt index (99.0) and debt sustainability (64.0) rankings with higher than common scores underneath high quality of expenditure and income mobilisation. Odisha has maintained low fiscal deficits, debt profile, and an above common capital outlay/GSDP ratio.

Whereas Kerala and Punjab battle with low high quality of expenditure and debt sustainability, the report mentioned, West Bengal faces income mobilisation and debt index points. Andhra Pradesh has excessive fiscal deficit and Haryana has a poor debt profile, it mentioned.

In response to the report, Odisha, Goa, Karnataka, Maharashtra and Chhattisgarh scored the very best common FHI rating for 2014-15 to 2021-22 interval. The information used to calculate the Fiscal Well being Index (main variables and sub-components underneath every variable) is sourced from the Comptroller and Auditor Common (CAG).