Lok Sabha Question No. 5286 (UNSTARRED), answered on 2025-04-02
Subject: Fiscal Health Index
Ministry: PLANNING
Asked by: Smt. Bharti Pardhi, Shri Damodar Agrawal, Shri P P Chaudhary, Dr. Manna Lal Rawat, Shri Basavaraj Bommai, Shri Alok Sharma, Shri Gajendra  Singh Patel, Shri Bajrang Manohar Sonwane, Shri Shrirang Appa Chandu Barne, Shri Kanwar Singh Tanwar

## GOVERNMENT OF INDIA MINISTRY OF PLANNING

## LOK SABHA

## UNSTARRED QUESTION NO. 5286 TO BE ANSWERED ON 02.04.2025

## FISCAL HEALTH INDEX

†5286. SHRI KANWAR SINGH TANWAR:

DR. MANNA LAL RAWAT:

SHRI BASAVARAJ BOMMAI:

SMT. BHARTI PARDHI:

SHRI DAMODAR AGRAWAL:

SHRI P P CHAUDHARY:

SHRI ALOK SHARMA:

SHRI SHRIRANG APPA CHANDU BARNE:

SHRI BAJRANG MANOHAR SONWANE:

SHRI GAJENDRA SINGH PATEL:

Will the Minister of PLANNING be pleased to state:

- (a) whether the Government proposes to launch a Fiscal Health Index in the country;
- (b) if so, the details and the salient features thereof;
- (c) the names and the categories of the States/UTs likely to be included or excluded in the said Index and the criteria fixed for inclusion/exclusion of the States/UTs;
- (d) the details of the sub-indices and parameters to be considered for ranking States in the Index along with their weightage and measurement methodology;
- (e) whether the Government has taken any steps for public awareness regarding fiscal health including budgeting, debt management and responsible expenditure and if so, the details thereof;
- (f) the manner in which the effectiveness of the said awareness campaigns is measured; and
- (g) whether any benchmarking system has been established to compare States' fiscal performance against national and international standards and if so, the details thereof?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CULTURE

## (RAO INDERJIT SINGH)

(a)  to  (g)  On  January  24,  2025,  NITI Aayog  published  the  first  edition  of  the  "Fiscal Health Index (FHI) 2025" in New Delhi. The FHI is designed to offer crucial, data-driven insights into the fiscal health of India's states, aiding informed policymaking and guiding

strategic interventions. Its analysis and findings aim to provide policymakers with a clear picture of the fiscal health of individual states, identifying areas in need of improvement. In the inaugural edition, 18 major states, excluding North East and Himalayan States as well  as  the  Union  Territories,  were  ranked  on  the  fiscal  parameters,  with  the  states categorized  into  four  groups:  Achievers,  Front  Runners,  Performers,  and  Aspirational. The analysis and findings aim to assist policymakers by offering a clear understanding of the  fiscal  health  of  individual  states,  helping  to  pinpoint  areas  that  need  reform  and strategic focus. The report helps understand fiscal status at the sub-national level and to drive  policy  reforms  that  will  promote  sustainable  and  resilient  economic  growth.  The rankings are at Annexure.

The  composite  Fiscal  Health  Index  (FHI)  has  been  developed  using  data  from  the Comptroller and Auditor General of India (CAG), covering the Financial Year 2022-23. The index assesses states based on five key indicators: Quality of Expenditure, Revenue Mobilization, Fiscal Prudence, Debt Index, and Debt Sustainability. A detailed methodology and analysis can be accessed at https://www.niti.gov.in/sites/default/files/202501/Fiscal\_Health\_Index\_24012025\_Final.p df. The detailed examination highlights individual state performances and also provides valuable insights into broader fiscal trends over time, allowing for a better understanding of fiscal health across the country.

The FHI report has been shared with all States/UTs to help them evaluate their fiscal performance  across  key  indicators.  States  are  encouraged  to  adopt  sustainable  fiscal practices suited to their economies and work towards fiscal prudence through appropriate state-level interventions

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ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (g)  OF  LOK  SABHA UNSTARRED QUESTION NO.  5286  FOR  02.04.2025  BY  SHRI  KANWAR  SINGH TANWAR:  DR.  MANNA  LAL  RAWAT:  SHRI  BASAVARAJ  BOMMAI:  SMT. BHARTI PARDHI: SHRI DAMODAR AGRAWAL: SHRI P P CHAUDHARY: SHRI ALOK SHARMA: SHRI SHRIRANG APPA CHANDU BARNE: SHRI BAJRANG MANOHAR SONWANE: SHRI GAJENDRA SINGH PATEL: REGARDING FISCAL HEALTH INDEX

|   Rank | State          | Category     |
|--------|----------------|--------------|
|      1 | Odisha         | Achiever     |
|      2 | Chhattisgarh   | Achiever     |
|      3 | Goa            | Achiever     |
|      4 | Jharkhand      | Achiever     |
|      5 | Gujarat        | Achiever     |
|      6 | Maharashtra    | Front Runner |
|      7 | Uttar Pradesh  | Front Runner |
|      8 | Telangana      | Front Runner |
|      9 | Madhya Pradesh | Front Runner |
|     10 | Karnataka      | Front Runner |
|     11 | Tamil Nadu     | Performer    |
|     12 | Rajasthan      | Performer    |
|     13 | Bihar          | Performer    |
|     14 | Haryana        | Performer    |
|     15 | Kerala         | Aspirational |
|     16 | West Bengal    | Aspirational |
|     17 | Andhra Pradesh | Aspirational |
|     18 | Punjab         | Aspirational |

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