Sign In
Learn bits
Index & Reports
Mahesh

25/01/25 16:14 PM IST

NITI Aayog launches the “Fiscal Health Index 2025” in New Delhi

In News
  • The Hon’ble Chairman of the 16th Finance Commission, Dr. Arvind Panagariya, launched the inaugural issue of NITI Aayog’s report titled “Fiscal Health Index (FHI) 2025”.
Fiscal Health Index 2025
  • The report titled 'Fiscal Health Index 2025' ranked States for 2022-23, covering 18 major States that drive the Indian economy in terms of their contribution to India's GDP, demography, total public expenditure, revenues, and overall fiscal stability.
  • The report aims to evolve an understanding of the fiscal health of States in the country and it has listed Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, Karnataka under 'front-runners' category.
  • Tamil Nadu, Bihar, Rajasthan and Haryana were classified as performers.
  • As per the report, released by 16th Finance Commission Chairman Arvind Panagariya, Odisha excelled in fiscal health with the highest overall index score of 67.8.
  • Referring to top five achiever States, NITI Aayog said these States have higher capital outlay of up to 4% of Gross State Domestic Product (GSDP), effective mobilisation of non-tax revenue, are revenue surplus and have low interest payments, which is up to 7% of revenue receipts.
  • These  States reported high total developmental expenditure up to 73%, witnessed consistent growth in own tax revenue, had balanced fiscal management and improved debt sustainability with debt-to-GSDP ratio of 24%.
  • The report noted that the aspirational States of Kerala, West Bengal, Andhra Pradesh and Punjab are struggling to meet the fiscal and revenue deficit targets, have low revenue mobilisation, witnessing a growing debt burden with debt sustainability a concern in these States.
  • As per the report, Odisha tops the debt index (99.0) and debt sustainability (64.0) rankings with better than average scores under quality of expenditure and revenue mobilisation. Odisha has maintained low fiscal deficits, a good debt profile, and an above average capital outlay/GSDP ratio.
  • While Kerala and Punjab struggle with low quality of expenditure and debt sustainability, the report said, West Bengal faces revenue mobilisation and debt index issues.
  • Andhra Pradesh has high fiscal deficit and Haryana has a poor debt profile, it said.
  • According to the report, Odisha, Goa, Karnataka, Maharashtra and Chhattisgarh scored the highest average FHI score for 2014-15 to 2021-22 period.
  • The data used to calculate the Fiscal Health Index (major variables and sub-components under each variable) is sourced from the Comptroller and Auditor General (CAG).

More Related Current Affairs View All

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

05 Mar

Arresting women at night

'The Madurai Bench of the Madras High Court in Deepa versus S. Vijayalakshmi and Others ruled that the legal provision in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which

Read More

05 Mar

Digital Personal Data Protection Act, 2023

'The Ministry of Electronics and Information Technology (MeitY) looking to wrap up public consultations on the draft Rules for the Digital Personal Data Protection Act, 2023 by Mar

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps