The Fiscal Health Index 2025, released by NITI Aayog, highlights how efficiently Indian states are managing their public finances. It evaluates key aspects such as revenue generation, development-focused spending, debt handling, and overall fiscal discipline. This index helps identify which states are using their financial resources most wisely to boost public welfare and long-term growth.
Top-10 Best Performing States in Fiscal Health Index 2025
Odisha – Score: 67.8
- Odisha tops the index with excellent scores in debt management and revenue mobilization. Its strong fiscal prudence and effective expenditure planning make it the best-performing state.
Chhattisgarh – Score: 55.2
- Known for balanced budgeting, Chhattisgarh ranks second due to its solid debt profile and consistent revenue-expenditure balance.
Goa – Score: 53.6
- Goa ranks third, thanks to its outstanding revenue collection and disciplined fiscal management.
Jharkhand – Score: 51.6
- With commendable debt management and prudent expenditure, Jharkhand secures the fourth position.
Gujarat – Score: 50.5
- Gujarat’s effective fiscal strategies and decent revenue generation place it fifth on the list.
Maharashtra – Score: 50.3
- As one of India’s most economically significant states, Maharashtra performs well in revenue mobilization and debt indicators.
Uttar Pradesh – Score: 45.9
- UP shows balanced performance across most fiscal parameters and takes the seventh spot.
Telangana – Score: 43.6
- With strong revenue mobilization, Telangana ranks eighth despite challenges in debt sustainability.
Madhya Pradesh – Score: 42.2
- MP stands out for high-quality expenditure but needs improvement in revenue generation and debt handling.
Karnataka – Score: 40.8
- Karnataka enters the top ten with strong scores in expenditure quality and overall fiscal balance.
| Rank | State | FHI Score | Quality of Expenditure |
| 1. | Odisha | 67.8 | 52 |
| 2. | Chhattisgarh | 55.2 | 55.1 |
| 3. | Goa | 53.6 | 45.5 |
| 4. | Jharkhand | 51.6 | 47.3 |
| 5. | Gujarat | 50.5 | 40 |
| 6. | Maharashtra | 50.3 | 37.1 |
| 7. | Uttar Pradesh | 45.9 | 45.8 |
| 8. | Telangana | 43.6 | 36.9 |
| 9. | Madhya Pradesh | 42.2 | 59.7 |
| 10. | Karnataka | 40.8 | 47.4 |
What is the Fiscal Health Index (FHI)?
The Fiscal Health Index is a comprehensive report by NITI Aayog that evaluates how well 18 major Indian states manage their finances. It considers:
- Revenue Mobilization (tax and non-tax income)
- Quality of Public Expenditure
- Debt Management and Sustainability
- Fiscal Prudence (spending within means)
It enables fair comparisons using standard indicators and encourages states to improve governance, planning, and long-term resource allocation.
Why is the Fiscal Health Index Important?
The FHI is crucial because it helps both policymakers and citizens understand:
- How states spend on development (education, health, infrastructure, etc.)
- How effectively they collect income (through taxes, fees, etc.)
- How well they manage debts and avoid fiscal stress
States with strong fiscal health can invest more in public services, reduce deficits, and ensure sustainable economic growth.
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