Nueva Delhi: Odisha, Chhattisgarh, Goa, Jharkhand and Gujarat have become the states with the best performance in the fiscal health index, compiled by the group of experts from the Niti Aayog government.
Punjab, Andhra Pradesh, West Bengal, Kerala and Haryana are at the end of the table. The performance of the states has been classified into four categories: winners, pioneers, performers and aspirational. Odisha, Chhattisgarh, Goa, Jharkhand and Gujarat are the winning countries, with a greater disbursement of capital, an effective mobilization of non -tax revenue, the creation of revenue surpluses and low interest payments. The states under the category of aspirations include Kerala, Western Bengal, Andhra Pradesh and Punjab. The states under the aspirational category are struggling to meet the fiscal and income deficit objectives, they have low Revenue mobilization And they face an increasing debt load, and debt sustainability is a concern.

The performance of the states varies between the five subcategories. For example, Uttar Pradesh and Bihar have a good score as spending, but occupy a lower place with respect to income mobilization; Karnataka has obtained good results in most indexes, but is among the last three states in terms of debt sustainability. Odisha and Chhattisgarh have had a good performance in the category of income mobilization and their own non -tax revenues have grown significantly due to the high collection of mining income. But with regard to the sustainability of debt, Chhattisgarh occupies a lower place compared to other states.
The Fiscal Health Index (FHI) aims to develop an understanding of the fiscal health of the country’s states. The analysis covers eighteen main states that promote the country’s economy in terms of its contribution to GDP, demography, total public spending, revenue and general tax stability.
“Since states are responsible for approximately two thirds of public spending and one third of total income, their fiscal performance is important for the general economic stability of the country,” according to the report. He also adds that the objective is to evaluate the fiscal health of the States through key fiscal parameters, identify fiscal strengths and weaknesses.