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NITI Aayog's Fiscal Health Index 2026 ranks State finances

5 October 2026 · ⏱ 2 মিনিট · GS2 Governance / GS3 Economy: State finances

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খবরে কেন?

Which body's data ranks every State's finances? The Fiscal Health Index source GS3 answers must name

A NITI Aayog index scores States on fiscal health using CAG data.

Why it matters: factual, Prelims-type

2

What you need to know

2 মিনিট

NITI Aayog has released the Fiscal Health Index 2026, which scores States on the health of their public finances.

The index is built mainly from data of the Comptroller and Auditor General of India.

It places States in categories such as achievers and front runners, and is meant to guide fiscal reform.

সূত্র: Topper IAS editorial (PIB / The Hindu / Indian Express)

3

মূল তথ্য

Remember these

  • NITI Aayog released the Fiscal Health Index 2026, scoring States on the health of their public finances
  • The index is built mainly from data of the Comptroller and Auditor General of India (CAG)
  • States are placed in categories such as achievers and front runners
  • The CAG audits State accounts under Article 151 of the Constitution
  • The index is meant to guide fiscal reform in States
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প্রিলিমস · মেইনস

How the exam will ask it

প্রিলিমস

  • NITI Aayog's Fiscal Health Index scores States on the health of their public finances.
  • The index draws its data mainly from the Comptroller and Auditor General of India, which audits State accounts.
  • The Finance Commission under Article 280 recommends tax devolution and grants; it is not the primary data source for the index.
  • The Controller General of Accounts compiles Union Government accounts, not State accounts.

মেইনস

GS2 Governance / GS3 Economy: State finances. Issue: wide variation in States' fiscal health, with debt and deficits constraining spending. Provision/policy: the index uses audited CAG data to rank States into categories such as achievers and front runners, complementing FRBM limits and Finance Commission transfers. Implication and way forward: transparent benchmarking can encourage competitive reform, but States need better revenue mobilisation, expenditure quality and debt management.

5

Quick recall

Answer before you reveal

NITI Aayog's Fiscal Health Index, which scores States on the health of their public finances, draws its data primarily from which institution?

  1. Finance Commission of India
  2. Comptroller and Auditor General of India
  3. Reserve Bank of India
  4. Controller General of Accounts
উত্তর দেখুন

উত্তর: B — Correct: Comptroller and Auditor General of India — The Comptroller and Auditor General audits State accounts, and its data is the primary source for the Fiscal Health Index. • Finance Commission of India — wrong: The Finance Commission recommends tax devolution and grants under Article 280; it is not the primary data source for the index. • Reserve Bank of India — wrong: The RBI publishes its own study of State finances, but the NITI Aayog index relies primarily on audited accounts, not RBI data. • Controller General of Accounts — wrong: The Controller General of Accounts compiles the accounts of the Union Government, not those of the States.

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