Fiscal Health Index: ✅It provides a comprehensive assessment of the fiscal health of 18 major States of India. ✅It is based on five key sub-indices: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index and Debt Sustainability, along with insights into state-specific challenges and areas for improvement. ✅It aims to throw light on the fiscal status at the sub-national level and guide policy reforms for sustainable and resilient economic growth. ✅It has been developed using data from the Comptroller and Auditor General (CAG). 📍Key Highlights of the Report: ✅With a cumulative score of 67.8, Odisha tops the ranking, followed by Chhattisgarh and Goa with scores of 55.2 and 53.6, respectively.  ✅The achiever States display strong fiscal health, excelling in revenue mobilization, expenditure management, and debt sustainability. ✅Improvements are seen in States like Jharkhand, which has strengthened fiscal prudence and debt sustainability, while Karnataka faces a decline due to weaker performance in expenditure quality and debt management. ✅These interstate disparities highlight the need for targeted reforms to address specific fiscal challenges and ensure sustainable growth. ✅Punjab, Andhra Pradesh, West Bengal and Kerala were the worst-performing States in the Fiscal Health Index (FHI), each facing significant fiscal challenges, and listed under “aspirational” category. ✅It has listed Maharashtra, Uttar Pradesh, Telangana, Madhya Pradesh, Karnataka under the “front-runners” category. ✅Tamil Nadu, Bihar, Rajasthan, and Haryana were classified as performers. #prelims #mains #economy