NITI Aayog released the second annual edition of the Fiscal Health Index 2026 in New Delhi today. The report highlights several policy priorities for strengthening fiscal health across states.
These include enhancing revenue mobilization and strengthening state-owned tax capacity, rationalizing committed expenditures to restore fiscal flexibility, and improving the composition and quality of capital expenditure.
During the event, NITI Aayog Vice Chairman Suman Bery stated that strengthening fiscal governance at the state level will be critical for maintaining macroeconomic stability and sustaining India's growth trajectory. He noted that systematic benchmarking tools, such as the Fiscal Health Index, will also help states identify structural fiscal challenges and adopt targeted policy reforms.
Speaking at the event, NITI Aayog CEO Nidhi Chhibber highlighted that improving fiscal resilience across states will be central to sustaining long-term development, reducing regional disparities, and supporting India's development aspirations.
The Fiscal Health Index 2026 provides a valuable resource for policymakers, researchers, and stakeholders by offering a transparent and data-driven assessment of state finances.
