EconomyGovernance
News 10 of 19

NITI Aayog Releases Fiscal Health Index 2026: Odisha Tops Among 28 States, 10 NE/Himalayan States Included for FY 2023-24

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
14 Mar 2026
~2 min
Source: Indian Express
Key Data:FY 2023-2428 States5 PillarsDebt levels 25-45% of GSDPOwn-tax shares above 60%Capital outlay 4-5% of GSDP
Bodies:NITI Aayog
Practice MCQs from today's news ▸
What This Article Covers

1.NITI Aayog released the second edition of the Fiscal Health Index (FHI) 2026 for FY 2023-24, expanding coverage to 10 North-Eastern and Himalayan states alongside 18 major states.

2.Odisha remains the top-performing state, with Goa and Jharkhand also in the 'Achiever' category; Punjab, West Bengal, and Kerala rank at the bottom.

3.The index uses five pillars: quality of expenditure, revenue mobilisation, fiscal prudence, debt index, and debt sustainability, to assess and rank states.

The Big Picture
Prelims · HighMains · Medium

NITI Aayog's Fiscal Health Index 2026 is a critical tool for evaluating state-level fiscal management, essential for understanding India's federal finance dynamics. The 2nd edition expands coverage to 28 states, including 10 NE/Himalayan states, and assesses performance across five fiscal pillars, making it a must-know report for GS Paper III (Economy) and state governance topics.

Exam Lens

Quick Exam Facts From News

Index Released ByNITI Aayog
Financial Year Assessed2023-24
Top Performer (General States)Odisha
Top Performer (NE/Himalayan)Arunachal Pradesh
Total States Covered28 States (18 Major + 10 NE/Himalayan)

1-Minute Revision

  • ›Index Released By: NITI Aayog
  • ›Financial Year Assessed: 2023-24
  • ›Target this Data: NITI Aayog released FHI 2026 for FY 2023-24.
  • ›Target this Nodal Body: NITI Aayog (not RBI or Finance Ministry).
  • ›Target this Ranking: Odisha (Top), Arunachal Pradesh (Top in NE/Himalayan group).

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which institution released the Fiscal Health Index 2026?

Q2Statement-basedHard

Consider the following statements regarding the Fiscal Health Index 2026:

1. It is the first edition of the index released by NITI Aayog.

2. The index for 2023-24 evaluates the fiscal performance of 28 Indian states.

3. The index assesses states based on five pillars including debt sustainability and revenue mobilisation.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the Fiscal Health Index 2026, which state was the top performer among the general category states for FY 2023-24?

Q4Application/ImpactMedium

What is the primary significance of the Fiscal Health Index's expansion to include North-Eastern and Himalayan states?

All 25 MCQs ▸
You finished this topic
Explore Related Topics
Related Current Affairs
Economy Current Affairs

Chhattisgarh Tops NITI Aayog Regulatory Ease, Attracts Rs 8 Lakh Cr Investment Proposals

Chhattisgarh's ambitious Industrial Development Policy 2024-30 has drawn Rs 8 lakh crore in investment proposals, signaling a turnaround from Maoist-affected 'Red' zone to an emerging industrial hub. The state ranked first in NITI Aayog's regulatory ease category, underscoring structural reforms that decriminalized 279 business provisions and introduced risk-based approvals. This case study is crucial for understanding how governance reforms can attract investment even in conflict-affected regions.

Economy Current Affairs

Anti-Dumping Duty on Chinese TiO2: DGTR Final Findings (Aug 3, 2026) - Centre Assures KMML, TTPL

The Centre has assured Kerala of imposing anti-dumping duty on Chinese titanium dioxide following DGTR's final findings. This protects PSUs like KMML and TTPL from low-cost imports. Key for Prelims: DGTR process, anti-dumping mechanism, and dates.

Polity Current Affairs

CAG Flags ₹3,161 Cr Power Subsidy Lapse & ₹3,217 Cr E-Procurement Irregularities in Delhi

The CAG report for 2022-23 exposes major flaws in Delhi's power subsidy scheme and e-procurement system, including wasteful subsidies to zero-consumption consumers and suspected collusive bidding. This is crucial for understanding CAG's role, subsidy targeting, and public procurement issues.

Economy Current Affairs

NITI Aayog Proposes Licensing Reforms in Law, Healthcare, Engineering; Services 55% of GDP

NITI Aayog has proposed wide-ranging regulatory reforms for professional services — law, accounting, architecture, engineering, and healthcare — covering licensing, business structures, interstate mobility, and mutual recognition with other countries. The report notes services form 55% of GDP and India is the seventh-largest services exporter with 4.3% global share. For aspirants, this is a high-yield governance/economy topic for Prelims data and Mains on services-led growth.

Economy Current Affairs

₹743.43 Cr Revenue Detected in 6 Months: Andhra AI-GST Model Wins National Acclaim at 6th Coordination Meet

Andhra Pradesh’s AI & Machine Learning-based GST administration model has been nationally acclaimed at the 6th National Co-ordination Meeting. The system detected ₹743.43 crore in revenue in just six months—more than double the previous manual process—and has sparked interest from several states. For exam aspirants, this is a key case study on AI in governance, tax administration reform, and state-level innovation.

Economy Current Affairs

Centre Mandates 60:40 Centre-State Funding Split for VB-G RAM-G Rural Employment Scheme

The Centre has shifted the funding pattern of the National Rural Employment Guarantee Scheme (now VB-G RAM-G) from 100% central funding to a 60:40 Centre-State split (90:10 for Himalayan/Northeast states). This marks a major fiscal federalism change, with states allocating full 40% despite political opposition. Essential for Prelims (ratio, scheme name) and Mains (fiscal federalism, rural wage floor).

Polity Current Affairs

Mines and Minerals Amendment Bill 2026: Centre Restricts States' Mineral Levies After SC 2024 Verdict

The Mines and Minerals (Development and Regulation) Amendment Bill 2026, passed by Parliament, restricts states from imposing additional levies on mineral rights and mineral-bearing land, effectively overriding the Supreme Court's 2024 judgment that upheld states' power to tax mineral rights. This reignites Centre-state tensions, especially with mineral-rich states like Jharkhand, Tamil Nadu, and Karnataka, potentially impacting their fiscal autonomy and federal balance.

Economy Current Affairs

Andhra Pradesh Missed ₹38,000 Cr Central Grants Post 16th FC; Revenue Deficit at ₹48,000 Cr

The 16th Finance Commission's recommendations have led to Andhra Pradesh losing ₹38,000 crore in central grants, worsening its revenue deficit to ₹48,000 crore in 2025-26. This case is a key example of fiscal federalism dynamics—critical for UPSC Mains GS2 and Prelims. The Centre has provided alternative support through capital grants and interest-free loans.