India’s top 10 best-performing states in the Fiscal Health Index 2025

The Indian states play a captious relation successful assets allocation to indispensable sectors specified arsenic agriculture, poorness alleviation, quality development, urbanization, and infrastructure. Effective fiscal absorption successful these areas tin stimulate growth, heighten social welfare, and beforehand determination economical convergence.

Fiscal Health Index 2025: India’s apical 10 best-performing states successful FY 2023

While Odisha, Chhattisgarh, Goa, and Gujarat person notably been the top-performing states passim each periods examined successful the study, present are the best-performing states successful India, for the fiscal twelvemonth 2022-23, according to NITI Aayog’s Fiscal Health Index (FHI) 2025 report, released connected January 24, 2025.

Source: Fiscal Health Index 2025, NITI Aayog

Key highlights from the Fiscal Health Index 2025:

Here’s a state-wise class (Source: FHI 2025, NITI AAyog)

Odisha stands retired arsenic the person successful fiscal health, boasting the highest wide scale people of 67.8, excelling successful the Debt Index (99.0) and Debt Sustainability (64.0) rankings portion besides maintaining above-average scores successful Quality of Expenditure and Revenue Mobilisation.

Its debased fiscal deficits, steadfast indebtedness profile, and robust superior outlay comparative to its Gross State Domestic Product (GSDP) further fortify its fiscal standing.

Following Odisha, Chhattisgarh and Goa way with scores of 55.2 and 53.6, respectively, with Chhattisgarh peculiarly noted for its awesome indebtedness index, whereas Goa achieves notable occurrence successful gross mobilisation.

Both states person demonstrated a commendable equilibrium betwixt expenditure and revenue, reflecting diligent fiscal management.

Jharkhand has made important strides successful improving its fiscal health, achieving a fertile of 4 successful FY 2022-23, up from a fertile of 10 during the 2015-19 to 2021-22 period, driven by enhanced gross mobilisation, greater fiscal prudence, and improved indebtedness sustainability.

Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka person been categorized arsenic ‘front-runners.’

On the different extremity of the spectrum, Punjab, Andhra Pradesh, West Bengal, and Kerala are identified arsenic the worst-performing states, categorised arsenic ‘aspirational’ owed to important fiscal challenges.

While Punjab and Kerala conflict with low-quality expenditure and indebtedness sustainability, West Bengal grapples with issues related to gross mobilisation and indebtedness indices, Andhra Pradesh struggles with a important fiscal deficit, and Haryana’s anemic indebtedness illustration exacerbates its fiscal difficulties.