NITI Aayog's Fiscal Health Index 2026: Odisha tops major states again; Arunachal leads NE and Himalayan states
NITI Aayog released the second Fiscal Health Index on 11 March 2026 in New Delhi; Odisha topped the 18 major states with a score of 73.1 and Arunachal Pradesh led the 10 North-Eastern and Himalayan states.
Summary
NITI Aayog Vice-Chairman Suman Bery and CEO Nidhi Chhibber released the second annual Fiscal Health Index (FHI) 2026 in New Delhi on 11 March 2026, assessing state finances for 2023โ24. Odisha kept the top rank among the 18 major states, raising its score to 73.1 from 67.4, followed by Goa (54.7), Jharkhand (50.5), Gujarat (49.9) and Maharashtra (45.0); Punjab (12.4), Andhra Pradesh, West Bengal and Kerala were at the bottom in the 'aspirational' group. This edition adds the 10 North-Eastern and Himalayan states, ranked separately: Arunachal Pradesh came first, followed by Uttarakhand and Tripura, while Himachal Pradesh and Manipur were at the bottom. The index is built from five sub-indices: quality of expenditure, revenue mobilisation, fiscal prudence, debt index and debt sustainability. NITI noted that states now account for nearly one-third of India's general government debt.
Key facts
- Released
- 11 March 2026, New Delhi โ 2nd edition, data for 2023โ24
- Top major state
- Odisha โ 73.1 (up from 67.4)
- Next
- Goa 54.7, Jharkhand 50.5, Gujarat 49.9, Maharashtra 45.0
- Bottom
- Punjab 12.4; Andhra Pradesh, West Bengal, Kerala also 'aspirational'
- NE / Himalayan (new)
- 10 states ranked separately โ Arunachal Pradesh 1st, Uttarakhand 2nd, Tripura 3rd
- Sub-indices
- Quality of expenditure, revenue mobilisation, fiscal prudence, debt index, debt sustainability
- Context
- States hold nearly one-third of general government debt
Practice MCQs 5 questions
Which State topped the 18 major States in NITI Aayog's Fiscal Health Index 2026, released on 11 March 2026?
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Correct answer: A โ Odisha
Odisha retained the top rank with a score of 73.1, ahead of Goa (54.7) and Jharkhand (50.5).
Which State ranked first among the North-Eastern and Himalayan States in the Fiscal Health Index 2026?
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Correct answer: D โ Arunachal Pradesh
Arunachal Pradesh ranked first, followed by Uttarakhand and Tripura; Himachal Pradesh and Manipur were at the bottom.
Which major State was ranked last, with a score of 12.4, in the Fiscal Health Index 2026?
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Correct answer: A โ Punjab
Punjab scored 12.4, the lowest among the 18 major States; Andhra Pradesh, West Bengal and Kerala were also in the bottom 'aspirational' group.
The Fiscal Health Index 2026 assesses the fiscal performance of States for which year?
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Correct answer: B โ 2023โ24
The second edition, released in March 2026, ranks States on their finances for 2023โ24; the first edition covered 2022โ23.
Consider the following statements about NITI Aayog's Fiscal Health Index 2026: 1. It ranks all 28 States together in a single list. 2. NITI Aayog noted that States account for nearly one-third of India's general government debt. Which of the above is/are correct?
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Correct answer: B โ 2 only
Statement 1 is wrong: the 18 major States and the 10 North-Eastern and Himalayan States are ranked separately because of structural differences. Statement 2 is correct.