Punjab ranks lowest in Niti Aayog’s Fiscal Health Index 2025, Odisha tops

The NITI Aayog on Friday released the Fiscal Health Index of 18 major states. The Fiscal Health Index evaluates states on five indicators: Quality of Expenditure, Revenue Mobilization, Fiscal Prudence, Debt Index and Debt Sustainability. Punjab’s score was lowest in terms of Quality of Expenditure, Fiscal Prudence, and Debt index, while it did marginally better in the fields of Revenue Mobilization and Debt Sustainability. Kerala and Punjab struggle with low Quality of Expenditure and Debt Sustainability, while West Bengal faces Revenue Mobilization and Debt Index issues. While debt growth and rising interest payments present fiscal challenges, these regions continue to navigate their financial landscapes with varied strategies.” The report noted that the top states witness good scores under the Debt Index and Debt Sustainability, reflecting that these states have effective fiscal management practices and may have no risk of default on debt.