NITI Aayog,released the second annual edition of the Fiscal Health Index 2026 in New Delhi. The report highlights several policy priorities for strengthening fiscal health across states.
These include enhancing revenue mobilisation and strengthening state-owned tax capacity, rationalising committed expenditures to restore fiscal flexibility, improving the composition and quality of capital expenditure.
During the event, Vice Chairman of NITI Aayog 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 support states in identifying structural fiscal challenges and adopting targeted policy reforms.
Speaking on the Occasion, CEO of NITI Aayog 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 an important resource for policymakers, researchers, and stakeholders by offering a transparent and data-driven assessment of state finances.
