Odisha once again proved its strength in handling finances, grabbing the top spot in NITI Aayog’s Fiscal Health Index (FHI) for 2026. With a score of 73.1, the state didn’t just hold onto first place—it actually improved on last year’s performance. This puts Odisha firmly at the top of the “Achiever” group, ahead of states like Goa and Jharkhand, both of which have focused on building solid financial systems for a while now.
So, what’s Odisha doing right? The state takes a disciplined approach to debt and brings in more revenue through its own taxes. Just look at the numbers: Odisha’s debt-to-GDP ratio dropped sharply from 23.46% in 2019-20 to just 14.39% in 2023-24. That’s a dramatic improvement and shows its economy is outpacing its borrowing. On top of that, Odisha kept its fiscal deficit down to 1.73% of GSDP—well below the 3% limit experts recommend. This careful management means interest payments eat up only 2.88% of revenue now, compared to almost 6% four years ago. The result? There’s more money left to spend on important public infrastructure.
But while Odisha is thriving, the index paints a different picture for other big states. Gujarat and Maharashtra stayed in the top five, and Haryana made a solid leap upward. Meanwhile, states like Punjab, West Bengal, and Kerala are still struggling under heavy debt. Punjab has total liabilities shot up by over ₹1.25 lakh crore in just five years, pushing its debt to ₹3.55 lakh crore. That leaves Punjab’s debt-to-GSDP ratio at an eye-popping 43-48%. In other words, nearly half of everything the state produces would be needed just to pay off its debt.
NITI Aayog’s report isn’t just a scoreboard—it’s a wake-up call for the country’s economic stability. States now carry almost a third of India’s total government debt. The top performers, with Odisha leading the way, share a few key habits: they keep their own tax revenues above 60% and put 4-5% of GSDP into capital projects. As the gap between leaders and laggards grows, the index makes one thing clear—India needs smarter, medium-term fiscal planning and more transparency around off-budget borrowing if it wants to keep its economy on track.