Fiscal Health Index 2025 published by the NITI Aayog provides a comprehensive assessment of fiscal health of 18 major States based on which of the following key sub-indices ?
1. Quality of expenditure
2. Debt index
3. Debt sustainability
4. Fiscal prudence
5. Revenue mobilisation
Select the answer using the codes given below :

Correct option is D

The Fiscal Health Index (FHI) 2025, published by NITI Aayog, provides a comprehensive and comparative assessment of the fiscal health of 18 major Indian States. The index is designed to evaluate not just fiscal outcomes but also the quality, sustainability, and prudence of fiscal management. To capture this multidimensional aspect, the Index is constructed using five key sub-indices:

1. Quality of Expenditure: This sub-index assesses how effectively States allocate spending, particularly towards capital expenditure and developmental spending, rather than revenue-heavy or non-productive expenditure.

2. Debt Index: This measures the level and composition of debt, including indicators such as debt-to-GSDP ratio, reflecting the overall debt burden of States.

3. Debt Sustainability: This evaluates whether States can service and sustain their debt over the medium to long term, taking into account interest payments, repayment capacity, and future liabilities.​

4. Debt sustainability: This evaluates whether States can service and sustain their debt over the medium to long term, taking into account interest payments, repayment capacity, and future liabilities.​

5. Revenue Mobilisation: This assesses States’ ability to raise own revenues, including tax effort, non-tax revenue performance, and efficiency in revenue collection.​