Odisha
Odisha Tops NITI Aayog Fiscal Health Index 2026
- 14 Mar 2026
- 2 min read
Why in News?
In the second edition of the Fiscal Health Index (FHI) 2026 released by NITI Aayog on 11th March, 2026, Odisha has once again emerged as the top-performing state among 18 major states.
Key Points:
- About Index: The index evaluates state finances for the fiscal year 2023-24, highlighting Odisha's consistent excellence in maintaining fiscal discipline and debt sustainability.
- Odisha’s Fiscal Success Pillars: According to the NITI Aayog report, Odisha’s top rank is driven by performance across five key parameters:
- Fiscal Prudence: Maintaining a fiscal deficit of 1.73% of GSDP, well within the 3% FRBM limit.
- Debt Sustainability: A significant reduction in the debt-to-GSDP ratio from 23.46% (2019-20) to 14.39% (2023-24).
- Revenue Mobilisation: High share of own-tax revenue (exceeding 60%) and strong non-tax revenue from mining-linked premiums.
- Quality of Expenditure: High capital outlay (around 4–5% of GSDP) focused on infrastructure, health, and education.
- Debt Index: Maintaining low interest burdens and manageable liabilities.
- FHI 2026 Top Rankers (Achiever Category):
- Odisha secured the #1 position with an improved overall score of 73.1.
- Goa (#2) and Jharkhand (#3) followed closely in the "Achiever" group.
- Bottom Rankers (Aspirational Category):
- Punjab (#18), Andhra Pradesh (#17), and West Bengal (#16) remained at the bottom due to high non-developmental spending and unsustainable fiscal patterns.
- New Inclusion: For the first time, 10 North-Eastern and Himalayan states were ranked separately. Arunachal Pradesh topped this category, followed by Uttarakhand and Tripura.
