The NITI Aayog released the second annual edition of the Fiscal Health Index 2026 on March 11 in New Delhi, offering a comprehensive and data-driven assessment of the fiscal performance of Indian states.
The report identifies several policy priorities for improving fiscal health, including:
- Enhancing revenue mobilisation and strengthening tax capacity of states
- Rationalising committed expenditures to improve fiscal flexibility
- Improving the composition and quality of capital expenditure
Expanded Scope of the Index
The second edition significantly expands the framework. While the first edition evaluated 18 major states, the latest report also includes 10 Northeastern and Himalayan states, making the assessment more inclusive and representative of India’s fiscal diversity.
To account for structural and geographic differences, these Northeastern and Himalayan states are evaluated and ranked separately from the major states.
Top Performing States
According to the index, the top 10 fiscally strong states are: Odisha, Goa, Jharkhand, Gujarat, Maharashtra, Chhattisgarh, Telangana, Uttar Pradesh, Karnataka and Madhya Pradesh.
Odisha retained its top position securing an overall score of 73.1. Goa and Jharkhand follow in the rankings, emerging alongside Odisha in the group of top “Achiever” states.
States at the Bottom
The index placed Punjab, West Bengal, and Kerala at the bottom of the fiscal health rankings.
Source: PIB & NITI Aayog
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