Why in news
NITI Aayog released its first "Fiscal Health Index 2025" report, ranking 18 major Indian States based on fiscal performance for 2022-23.
Key Findings
Odisha, Chhattisgarh, Goa, and Jharkhand were ranked as "achievers" for their strong fiscal health.
These states excelled due to higher capital outlay (up to 4% of Gross State Domestic Product (GSDP)), effective non-tax revenue mobilization, and low interest payments (around 7% of revenue).
Odisha topped the debt sustainability and debt index rankings, with low fiscal deficits and a strong debt profile.
States like Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka were categorized as "front-runners", showing balanced fiscal management and consistent tax revenue growth.
States such as Tamil Nadu, Bihar, Rajasthan, and Haryana were classified as "performers", showing relatively better fiscal health.
Aspirational States: Punjab, Andhra Pradesh, West Bengal, and Kerala were listed as struggling
Punjab & Kerala: Struggling with low-quality expenditure and debt sustainability.
West Bengal: Facing challenges with revenue mobilization and high debt.
Andhra Pradesh: Dealing with high fiscal deficits.
Haryana: Noted for a poor debt profile.
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