- By Ridam Sharma
- Wed, 14 May 2025 03:38 PM (IST)
- Source:JND
India's Fiscal Health Index (FHI) 2025: The Fiscal Health Index (FHI) is a tool created by NITI Aayog of India to measure the financial health of Indian states, based on how states spend, how much revenue they collect, how well they manage deficits, their debt, and whether their debts are sustainable. The FHI also provides a comparison between states to identify the areas of improvement and promote economic stability. To learn more, here’s a list of the top 10 best-performing states in India in the Fiscal Health Index 2025, along with their quality of expenditure, revenue mobilisation, fiscal prudence, debt index, debt sustainability and FHI score.
Top 10 States by Fiscal Health Index 2025:
| Rank | State | FHI Score | Quality of Expenditure | Revenue Mobilisation | Fiscal Prudence | Debt Index | Debt Sustainability |
|---|---|---|---|---|---|---|---|
| 1 | Odisha | 67.8 | 52 | 69.9 | 54 | 99 | 64 |
| 2 | Chhattisgarh | 55.2 | 55.1 | 56.5 | 56 | 79.6 | 29 |
| 3 | Goa | 53.6 | 45.5 | 87.1 | 59.4 | 51 | 25.2 |
| 4 | Jharkhand | 51.6 | 47.3 | 45.7 | 62.4 | 66.9 | 35.7 |
| 5 | Gujarat | 50.5 | 40 | 48.7 | 52.7 | 69 | 42 |
| 6 | Maharashtra | 50.3 | 37.1 | 59.1 | 41.8 | 76.4 | 36.8 |
| 7 | Uttar Pradesh | 45.9 | 45.8 | 34.6 | 44.7 | 59.9 | 44.5 |
| 8 | Telangana | 43.6 | 36.9 | 75.2 | 40.8 | 53.3 | 11.7 |
| 9 | Madhya Pradesh | 42.2 | 59.7 | 27.6 | 35.6 | 61 | 27.2 |
| 10 | Karnataka | 40.8 | 47.4 | 43.9 | 43.9 | 62.2 | 6.7 |
List Of The Top 10 Indian States With the Best Fiscal Health Index 2025
Odisha
Odisha tops the Fiscal Health Index 2025 with the highest score of 67.8. The south-Indian state ranks high in debt management and sustainability with low fiscal deficits, a sound debt profile, and a high capital outlay-to-GSDP ratio. This all indicates stable financial management and strong revenue mobilisation. Additionally, the state’s strong fiscal strength helps it to spend a lot on public services and infrastructure.
Chhattisgarh
Chhattisgarh is the second-best-performing state in the Fiscal Health Index with a score of 55.2, all thanks to the state's balanced income and expenditure approach. The state also enjoys a good debt profile and sustains a revenue surplus with a priority for social sector outlays and fiscal health. The state's 2025-26 budget aims for a revenue surplus and restricts the fiscal deficit to permissible levels.
Goa
Goa is third on the list of the best Fiscal Health Index, all thanks to its high revenue mobilisation and effective tax administration. The economic growth of the state is estimated at more than 14% in 2025-26, with a push to restore mining and improve infrastructure. Goa's cautious fiscal management allows it to keep a good fiscal balance despite being small in geopolitical size.
Jharkhand
Jharkhand has seen much improvement in its fiscal position with enhanced revenue mobilisation and a good revenue surplus. The fiscal deficit of the state is much below the threshold of the central government, and the state still spends on its development while keeping debt under check.
Gujarat
Gujarat is thriving with balanced expenditure and good revenue collection. The india state has one of the best financial health in the country, due to its solid industrial base and better fiscal management. For continued growth, Gujarat needs to have consistent investment in social and infrastructural sectors.
Maharashtra
Maharashtra enjoys excellent revenue mobilisation and a broad-based economy. With high commitment to expenditure, the state stays fiscally prudent and is in good shape on its debt profile and can catapult with big-time development programs.
Uttar Pradesh
Uttar Pradesh has progressed in fiscal prudence over the last few years, strengthening revenue mobilisation and debt management. The state's large population base and expanding economy are perfect for fiscal well-being and sustained development.
Telangana
Telangana has outstanding revenue mobilisation. The state's main focus is on capital spending, and mindful fiscal handling has enabled it to have a stable financial scenario.
Madhya Pradesh
Madhya Pradesh leads in expenditure quality, particularly in developmental and capital expenditures. The state's efforts to contain deficits and manage debt have improved its financial health.
Karnataka
The list of top 10 best-performing states in the Fiscal Health Index 2025 concludes with Karnataka. With expenditure quality strengths and a revenue base diversification, along with the state's focus on technology and innovation is bring fiscal stability and growth opportunities for the South India state.