NITI Aayog has released the second edition of the Fiscal Health Index (FHI) 2026 to assess Indian states' fiscal performance. Unveiled by Vice-Chairman Suman Bery and CEO Nidhi Chhibber, this edition expanded coverage to include North-Eastern and Himalayan states, adding ten more to the original 18 major states.
States account for nearly one-third of India's general government debt. The report highlights fiscal variation across states and recommends stronger revenue mobilisation, rationalised expenditure, medium-term planning, and improved transparency in fiscal data management.