Fiscal Health Index (FHI)
- NITI Aayog has released the second edition of its ‘Fiscal Health Index (FHI)’ in 2026 to assess the fiscal performance of Indian states.
- The index is a framework designed to assess the fiscal sustainability of states, improve transparency and support data-based fiscal policymaking.
- State governments account for nearly one-third of India’s total public debt.
- Only 18 major states were assessed in the first edition.
- The new edition also includes 10 states from the North-East and the Himalayan region.
- Gujarat, Maharashtra, Chhattisgarh, Telangana, Uttar Pradesh and Karnataka are in the ‘Front Runner category’ of the Fiscal Health Index 2026.
