Tripura has emerged as one of the top-performing states in fiscal management, according to the second edition of the Fiscal Health Index (FHI) for the financial year 2023–24 released by NITI Aayog.
The report, released on March 11, 2026 in New Delhi by Suman Bery, highlights the financial performance of states across the country and provides a detailed assessment of their fiscal governance and public financial management.
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Comprehensive Assessment of State Finances
The Fiscal Health Index provides a data-driven evaluation of how states manage their finances. It also serves as a benchmarking tool for policymakers to strengthen fiscal governance and improve financial systems.
The index evaluates states across five key pillars. These include Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability. Together, these indicators help assess the financial stability of states and identify areas that require improvement.
By analysing these parameters, the report aims to encourage responsible fiscal policies and better management of public funds.
Inclusion of North-Eastern and Himalayan States
In its second edition, the Fiscal Health Index expanded its scope to include 10 North-Eastern and Himalayan states. This move has made the assessment more inclusive and representative of the country’s diverse fiscal landscape.
The expanded framework allows policymakers to compare fiscal performance across different regions and identify best practices in financial management.
Tripura Secures Third Position in Category
Among the 18 major states, Odisha secured the top position in the index. Goa ranked second, while Jharkhand took the third spot.
In the category of North-Eastern and Himalayan states, Arunachal Pradesh ranked first, followed by Uttarakhand in second place. Tripura secured the third position, reflecting significant progress in fiscal discipline and financial management.
The report notes that Tripura performed well in areas such as revenue generation, quality expenditure, and effective debt management. These factors contributed to the state’s strong performance in the fiscal ranking.
Focus on Strengthening Fiscal Governance
The Fiscal Health Index emphasises the need for states to strengthen revenue mobilisation to maintain stable finances. It also highlights the importance of rationalising committed expenditure to improve fiscal flexibility.
Additionally, the report encourages states to improve the composition and efficiency of capital expenditure. Such measures can help promote sustainable economic growth and better utilisation of public resources.
The publication also stresses the need to enhance fiscal transparency and modernise public financial management systems. According to the report, these reforms are essential to ensure long-term fiscal sustainability across states.
Benchmark for Policy Reforms
The Fiscal Health Index aims to provide policymakers with a clear framework to track financial performance and adopt best practices. By highlighting strengths and weaknesses, the report helps states refine their fiscal strategies.
Tripura’s strong ranking in the index indicates improved financial discipline and effective fiscal management in recent years. Experts believe such assessments can guide future policy decisions and strengthen economic planning at the state level.
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