Maharashtra tops fiscal heath report; Chhattisgarh, Telangana follow suit

Category : State Published on: August 17 2023

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Recently Maharashtra has taken the lead in the Fiscal Health Report by demonstrating impressive financial stability.
Interestingly, Chhattisgarh, a state that is typically linked with economic difficulties, has surprisingly claimed the second spot in the rankings.
The Fiscal Health Report’s assessment is based on four crucial fiscal parameters: Fiscal Deficit, Own Tax Revenue, State Debt Levels, and Interest Payment to Revenue Receipts.
Despite its reputation as one of the economically challenged states in the nation, Chhattisgarh’s second-place ranking in the Fiscal Health Report is raising eyebrows.
The Fiscal Health Report highlights the challenging fiscal situations of Bengal, Punjab, Bihar, Rajasthan, and Kerala.
These states demonstrate vulnerability to debt sustainability risks due to weak fiscal and debt metrics, a concern predating the pandemic.
The Reserve Bank of India (RBI) had issued a warning to states about these risks in a June 2022 report.