Fiscal Well being Index 2025 Rankings: In a just lately launched report by NITI Aayog, Odisha, Chhattisgarh, Goa, and Jharkhand have been recognized because the top-performing states among the many 18 Indian states that considerably contribute to India’s GDP, demographics, whole public expenditure, revenues, and general fiscal stability.
Arvind Panagariya, Chairman of the sixteenth Finance Fee, launched the inaugural subject of NITI Aayog’s report in New Delhi on Friday.
The Indian states play a important position in useful resource allocation to important sectors akin to agriculture, poverty alleviation, human improvement, urbanization, and infrastructure. Efficient fiscal administration in these areas can stimulate development, improve social welfare, and promote regional financial convergence.
Fiscal Well being Index 2025: India’s high 10 best-performing states in FY 2023
Whereas Odisha, Chhattisgarh, Goa, and Gujarat have notably been the top-performing states all through all durations examined within the research, listed here are the best-performing states in India, for the monetary 12 months 2022-23, in line with NITI Aayog’s Fiscal Well being Index (FHI) 2025 report, launched on January 24, 2025.
Supply:Â Fiscal Well being Index 2025, NITI Aayog
Key highlights from the Fiscal Well being Index 2025:
Odisha stands out because the chief in fiscal well being, boasting the very best general index rating of 67.8, excelling within the Debt Index (99.0) and Debt Sustainability (64.0) rankings whereas additionally sustaining above-average scores in High quality of Expenditure and Income Mobilisation.
Its low fiscal deficits, wholesome debt profile, and strong capital outlay relative to its Gross State Home Product (GSDP) additional strengthen its fiscal standing.
Following Odisha, Chhattisgarh and Goa path with scores of 55.2 and 53.6, respectively, with Chhattisgarh significantly famous for its spectacular debt index, whereas Goa achieves notable success in income mobilisation.
Each states have demonstrated a commendable stability between expenditure and income, reflecting diligent fiscal administration.
Jharkhand has made important strides in bettering its fiscal well being, attaining a rank of 4 in FY 2022-23, up from a rank of 10 throughout the 2015-19 to 2021-22 interval, pushed by enhanced income mobilisation, larger fiscal prudence, and improved debt sustainability.
Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, and Karnataka have been categorized as ‘front-runners.’
On the opposite finish of the spectrum, Punjab, Andhra Pradesh, West Bengal, and Kerala are recognized because the worst-performing states, categorised as ‘aspirational’ resulting from important fiscal challenges.
Whereas Punjab and Kerala wrestle with low-quality expenditure and debt sustainability, West Bengal grapples with points associated to income mobilisation and debt indices, Andhra Pradesh struggles with a major fiscal deficit, and Haryana’s weak debt profile exacerbates its monetary difficulties.
