NITI Aayog released the inaugural Fiscal Health Index (FHI) 2025. Which state topped the index with the highest overall score, indicating strong fiscal management?​

Correct option is B

The correct answer is (b) Odisha

Explanation:

• According to the inaugural Fiscal Health Index (FHI) 2025 released by NITI Aayog, Odisha topped the list of 18 major Indian states with an overall score of 67.8, indicating strong fiscal management.
• Odisha excelled particularly in the Debt Index (99.0) and Debt Sustainability (64.0), showcasing prudent debt handling and sustainable fiscal practices.
• The state's performance in revenue mobilization and quality of expenditure further strengthened its top rank.

Information Booster:

• The Fiscal Health Index assesses states based on five core parameters:
1. Quality of Expenditure
2. Revenue Mobilization
3. Fiscal Prudence
4. Debt Index
5. Debt Sustainability
• States are ranked in categories such as Achievers, Front Runners, Performers, and Aspirational, based on their composite scores.
• Odisha's strong fiscal discipline and responsible financial policies placed it in the Achievers category.

Additional Information:

• Option (a) Karnataka: Ranked around 10th; considered moderate in fiscal health.
• Option (c) Tamil Nadu: Ranked lower, around 11th, categorized as a Performer.
• Option (d) Maharashtra: Ranked approximately 6th; performed well but did not top the index.
• Odisha's top rank reflects its effective budget planning, debt control, and commitment to sustainable development.