Fiscal Health Index 2025 was released recently by NITI Aayog in January 2025. Which state achieved top ranking among 18 major states?

The correct answer is Odisha.

Key Points

• Odisha topped the Fiscal Health Index 2025 released by NITI Aayog among 18 major states.
• The Fiscal Health Index assesses states based on their fiscal prudence, revenue generation, and expenditure management.
• Odisha has been known for its consistent fiscal discipline and efficiency in managing resources.
• Efforts like increasing revenue from non-tax sources and better expenditure prioritization contributed to Odisha's success.

Important Points

• The Fiscal Health Index evaluates states on parameters such as revenue buoyancy, fiscal deficit management, and the quality of public expenditure.
• It is an initiative by NITI Aayog to promote transparency and accountability in state fiscal management.

Additional Information

• Chhattisgarh: Chhattisgarh has shown improvement in fiscal management in recent years, but it ranked lower in the Fiscal Health Index compared to Odisha.
• Goa: Goa is a smaller state and has unique fiscal challenges due to its dependence on tourism and mining, which affect its fiscal health.
• Karnataka: Karnataka is known for its robust revenue generation, especially from IT and manufacturing industries, but it faced challenges in expenditure management.