Fiscal Health Index Report 2025

NITI Aayog has released the Fiscal Health Index (FHI) 2025 in January 2025, assessing the fiscal condition of Indian states to guide policy reforms for sustainable and resilient economic growth.

Key Features of FHI 2025

  • Annual index providing data-driven insights to improve state-level fiscal governance.
  • Ranks states based on a composite fiscal index, which includes:
    • Five major sub-indices
    • Nine minor sub-indices
  • Classification of States:
    • Achiever: Score >50
    • Front Runner: 40-50
    • Performer: 25-40
    • Aspirational: <25
  • Covers 18 major states, excluding special category and Himalayan states, for the financial year 2022-23.
  • Aligned with the Competitive Governance Initiative to promote fiscal incentives and performance-based governance.

Key Findings of FHI 2025

  • Top-performing States: Odisha, ....
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