The launch event was attended by Suman Bery, Vice Chairman, NITI Aayog; NITI Aayog member Dr. Arvind Virmani, BVR Subrahmanyam (CEO) and Dr. Anoop Singh (Distinguished Fellow), along with other senior officials.
The FHI aims to guide policy reforms for sustainable and resilient economic growth by offering data-driven insights into state-level fiscal performance, the central government’s think tank said.
The report ranks states based on a composite fiscal index, which considers five major sub-indices: quality of expenditure, revenue mobilization, fiscal prudence, debt index, and debt sustainability.
Odisha topped the ranking with a score of 67.8, followed by Chhattisgarh (55.2) and Goa (53.6). The achiever States exhibit strong fiscal health, excelling in revenue generation, expenditure control, and debt management. The report highlights the need for targeted reforms to address specific fiscal challenges and ensure sustainable growth across states. For instance, Jharkhand strengthened fiscal prudence and debt sustainability, while Karnataka declined due to weaker expenditure quality and debt management.
Dr. Panagariya emphasized the importance of fiscal stability for balanced regional development and long-term sustainability. He stated that the FHI promotes a more integrated approach to fiscal health, highlighting the shared responsibility of both the central and state governments in achieving national prosperity.
Suman Bery, Vice Chairman of NITI Aayog, stressed that the FHI is not just a ranking but a tool designed to improve the fiscal health of states by providing a framework to evaluate their financial well-being. He emphasized that the FHI provides a roadmap for fiscal consolidation, transparency, and effective resource management.
BVR Subrahmanyam, CEO of NITI Aayog, highlighted the FHI’s role in aiding policymakers in making informed decisions and promoting healthy competition among states. He emphasized that the report’s findings align with India’s vision of achieving “Viksit Bharat @2047,” where fiscal discipline at the state level is crucial for economic transformation.
Dr. Virmani congratulated the team, emphasizing that the FHI report will highlight cooperative federalism’s role in strengthening India’s governance framework. He stressed collaboration between the Centre and states to address regional disparities and drive holistic economic development.