Fiscal Health Index 2026: With Odisha leading, here are the top 10 best-performing states in India

Prudent fiscal management, stable revenues, and effective deficit control drive Odisha’s strong debt profile, according to the report.

Goa and Jharkhand followed in second and third positions, respectively, rising from their previous year’s status as ‘Front Runners’.

Chhattisgarh, which ranked second as an ‘Achiever’ last year, slipped to sixth in the ‘Front Runners’ category due to weaker fiscal conditions.

Gujarat, Maharashtra and Telangana showcased stable and moderate fiscal strength, driven by resilient own-revenue bases and prudent debt levels.

Haryana also moved up in the rankings from 14 last year to 11 this year, indicating fiscal stability through disciplined expenditure management.

Similarly, Bihar, ranked 12, achieved marginal recovery through improved quality of expenditure and revenue surplus.

In contrast, Punjab, Andhra Pradesh, West Bengal and Kerala sit at the bottom of the rankings with ‘Aspirational’ status, facing ongoing financial strain as a result of widening, sustained deficits and average revenue growth.

Top 10 Best-Performing Indian States in Fiscal Health Index 2026:

Source: Fiscal Health Index 2026 by NITI Aayog

Note: This evaluates the fiscal performance of 18 major states compared to the previous edition

Interestingly, FHI 2026 also assessed 10 northeastern and Himalayan states. Arunachal Pradesh led in the first position, driven by its exceptionally high score in the quality of expenditure category, with Uttarakhand following next, standing out with very high revenue mobilisation.

The remaining northeastern states experienced mixed results, except for Nagaland and Manipur, which, along with Himachal Pradesh, were among the weaker-performing states due to limited administrative capacity and a fragmented public financial management system, the report noted.