Odisha Tops India's Fiscal Health Chart: A Model of Economic Prudence

Odisha has emerged as India's top state in fiscal health for FY 2022-23, according to NITI Aayog's Fiscal Health Index. Achieving the highest score of 67.8, Odisha excelled in debt management and sustainability, showcasing a robust economic model praised for its fiscal discipline and revenue mobilization.

Odisha has claimed the title of top performer in India's fiscal health for the financial year 2022-23, as per the latest Fiscal Health Index report released by NITI Aayog. Garnering an impressive FHI score of 67.8, it marks the first time Odisha has ascended to the number one position nationwide.

The Fiscal Health Index evaluates states based on various fiscal parameters, with Odisha shining in key sectors such as the Debt Index and Debt Sustainability. The report praised Odisha, stating, "Odisha excels in fiscal health with the highest overall index score of 67.8. It tops the Debt Index (99.0) and Debt Sustainability (64.0) rankings, surpassing average scores in Quality of Expenditure and Revenue Mobilization."

The state's rigorous fiscal discipline leads to low fiscal deficits, a solid debt profile, and a commendable Capital Outlay/GSDP ratio. Notably, Odisha has improved non-tax revenue mobilization and significantly invested in health and education, achieving a high compound annual growth rate of 33.8% from 2020 to 2022. Odisha remains committed to fiscal prudence, adhering to the Fiscal Responsibility and Budget Management Act since 2005, serving as a role model for fiscal sustainability.

(With inputs from agencies.)