Reports IndicesFriday, 13 March 2026·https://testbook.com/current-affairs/13-march-2026-daily-current-affairs
NITI Aayog releases Fiscal Health Index 2026 covering 18 major states and 10 NE-Himalayan states
The second annual Fiscal Health Index 2026 evaluates fiscal performance of Indian states with a separate ranking for NE and Himalayan states.
Key highlights
Direct fact
In March 2026, NITI Aayog released the second annual Fiscal Health Index (FHI) 2026 to assess the fiscal soundness of Indian states and guide evidence-based policymaking.
Key specifics
- The 2026 edition covers 18 major states and 10 North-Eastern and Himalayan states.
- The North-Eastern and Himalayan states are ranked separately from the major states.
- Most of the 18 major states recorded moderated FHI scores in 2023-24 compared with the previous year.
- The index highlights the need to improve own-tax capacity, capital expenditure quality and medium-term fiscal planning.
- It also stresses monitoring off-budget borrowings and strengthening public financial management systems.
Exam lens
TNPSC may ask: reports and indices, NITI Aayog, Fiscal Health Index 2026, 18 major states, 10 NE-Himalayan states. One-liner: The index is a tool for comparing state fiscal health and reform priorities.