Answer: Odisha
Notes: The Fiscal Health Index (FHI) by NITI Aayog assesses the fiscal health of Indian states. It covers 18 major states that contribute significantly to India's Gross Domestic Product (GDP), public expenditure, revenue, and fiscal stability. Odisha ranks first in the index, followed by Chhattisgarh, Goa, Jharkhand, and Gujarat. As states handle two-thirds of public spending and one-third of total revenue, their fiscal health is crucial for national economic stability. The index uses data from the Comptroller and Auditor General of India (CAG) for the financial year 2022-23 to compare and benchmark fiscal performance. It helps policymakers make informed decisions to improve fiscal sustainability and resilience. The index evaluates tax buoyancy, which measures how responsive a state's tax revenue is to its Gross State Domestic Product (GSDP) growth. It assesses revenue generation, including own tax and non-tax receipts.
