- NITI Aayog developed the Fiscal Health Index (FHI) initiative to improve the understanding of the fiscal health of states in India.
- The FHI analysis covers eighteen major states, which drive the Indian economy, in terms of their contribution to India’s GDP, demographics, total public expenditure, revenue and overall fiscal sustainability.
- Odisha topped the index, followed by Chhattisgarh, Goa, Jharkhand and Gujarat.
- Since states account for nearly two-thirds of public expenditure and one-third of total revenue, their fiscal performance is critical to the country’s overall economic sustainability.
- NITI Aayog has developed the Composite Fiscal Health Index using data from the Comptroller and Auditor General of India (CAG) for the financial year 2022-23.
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