Fiscal Health Index 2025 Rankings: NITI Aayog’s recent study ranks Odisha and Chhattisgarh and Goa and Jharkhand as the highest-performing states within India’s top 18 contributors to GDP and population statistics economic expenditures and financial stability measurements.
On Friday Arvind Panagariya as Chairman of the 16th Finance Commission launched NITI Aayog’s inaugural report at New Delhi.
Resource allocation for agriculture and poverty alleviation alongside human development implementation and infrastructure development remains a primary responsibility of Indian states. Fiscal management which invests effectively into these essential sectors motivates growth alongside improved social well-being and regional economic unified development.
Fiscal Health Index 2025: India’s top 10 best-performing states in FY 2023
The NITI Aayog’s Fiscal Health Index (FHI) 2025 recent report revealed Odisha, Chhattisgarh, Goa, and Gujarat positioned themselves as top performers across every investigating period.
Key highlights from the Fiscal Health Index 2025:
In terms of fiscal health Odisha excels as the top performer with an overall index score of 67.8 due to leading positions in the Debt Index at 99.0 and Debt Sustainability at 64.0 with additional above-average results in Quality of Expenditure and Revenue Mobilisation.
| Rank 2022-23 | State | FHI Score | Quality of Expenditure | Revenue Mobilization | Fiscal Prudence | Debt Index | Debt Sustainability |
| 1 | Odisha | 67.8 | 52 | 69.9 | 54 | 99 | 64 |
| 2 | Chhattisgarh | 55.2 | 55.1 | 56.5 | 56 | 79.6 | 29 |
| 3 | Goa | 53.6 | 45.5 | 87.1 | 59.4 | 51 | 25.2 |
| 4 | Jharkhand | 51.6 | 47.3 | 45.7 | 62.4 | 66.9 | 35.7 |
| 5 | Gujarat | 50.5 | 40 | 48.7 | 52.7 | 69 | 42 |
| 6 | Maharashtra | 50.3 | 37.1 | 59.1 | 41.8 | 76.4 | 36.8 |
| 7 | Uttar Pradesh | 45.9 | 45.8 | 34.6 | 44.7 | 59.9 | 44.5 |
| 8 | Telangana | 43.6 | 36.9 | 75.2 | 40.8 | 53.3 | 11.7 |
| 9 | Madhya Pradesh | 42.2 | 59.7 | 27.6 | 35.6 | 61 | 27.2 |
| 10 | Karnataka | 40.8 | 47.4 | 43.9 | 43.9 | 62.2 | 6.7 |
Its position as fiscal leader is supported by its minimal budget deficits and sound debt pattern and strong capital spending compared to its Gross State Domestic Product (GSDP).
After Odisha tows in second position with 55.2 score followed by Chhattisgarh with 53.6 points as Goa demonstrates pharmacological achievements within revenue collection and financial debt control.
Both states prove their excellence in fiscal management through the fundamental balance of their expenditure costs with their financial earnings.
Economic improvements in Jharkhand were evident through its improved fiscal standing jumping from rank 10 in 2015-19 to rank 4 in 2022-23 thanks to better revenue collection coupled with increased financial discipline and improved debt ratios.
The assessment groups Maharashtra alongside Uttar Pradesh Telangana Madhya Pradesh and Karnataka as ‘front-runners.’
Research identifies Punjab and Andhra Pradesh and West Bengal and Kerala as ‘aspirational’ states for their substantial fiscal difficulties.
Punjab together with Kerala encounter difficulties in managing their debt sustainability and poor spending quality while West Bengal faces revenue challenges along with debt issues and Andhra Pradesh faces highs fiscal deficit rates and Haryana sustains poor debt patterns judged to increase its financial challenges.
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