SF Prep Notes

NITI Aayog's first Fiscal Health Index 2025 ranks Odisha top among 18 major states

The inaugural Fiscal Health Index 2025 of NITI Aayog, launched in New Delhi on 24 January 2025, ranked Odisha first among 18 major states with a score of 67.8.

Summary

NITI Aayog's inaugural Fiscal Health Index (FHI) 2025 was launched in New Delhi on 24 January 2025 by 16th Finance Commission Chairman Arvind Panagariya. The FHI assesses 18 major states on five sub-indices: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index and Debt Sustainability. Odisha topped with a score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6); Jharkhand showed improvement while Karnataka declined. The FHI is to be an annual publication.

Key facts

Launched
24 January 2025, New Delhi
Launched by
Arvind Panagariya, Chairman, 16th Finance Commission
Coverage
18 major states
Sub-indices
Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, Debt Sustainability
Top 3
Odisha 67.8, Chhattisgarh 55.2, Goa 53.6
Frequency
Annual

Practice MCQs 4 questions

Q1

Which state topped NITI Aayog's inaugural Fiscal Health Index 2025?

Show answer

Correct answer: D — Odisha

PIB 2095974: Odisha topped with a score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6).

Q2 Advanced

Who launched NITI Aayog's Fiscal Health Index 2025 on 24 January 2025?

Show answer

Correct answer: A — Arvind Panagariya

PIB 2095974: 16th Finance Commission Chairman Arvind Panagariya launched the inaugural FHI 2025.

Q3 Advanced

Which of the following is NOT one of the five sub-indices of NITI Aayog's Fiscal Health Index 2025?

Show answer

Correct answer: D — Ease of Doing Business

PIB 2095974: the sub-indices are Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index and Debt Sustainability.

Q4 Advanced

Which state ranked second in NITI Aayog's Fiscal Health Index 2025?

Show answer

Correct answer: A — Chhattisgarh

PIB 2095974: Odisha (67.8) was followed by Chhattisgarh (55.2) and Goa (53.6).

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