Tripura has been ranked among the leading states in the Fiscal Health Index (FHI) 2023–24, according to the second edition of the report released by the NITI Aayog. The report was formally released on March 11, 2026, in New Delhi by Suman Bery, Vice Chairman of NITI Aayog, in the presence of senior officials of the policy think tank.
The Fiscal Health Index is a data-based assessment that evaluates the financial performance of Indian states. The report aims to help governments understand their fiscal position and improve financial management. It also serves as a benchmarking tool for policymakers to compare fiscal performance across states and identify areas that need improvement.
The Index measures the fiscal condition of states using five key indicators. These include the quality of government spending, the ability of states to mobilise revenue, fiscal prudence in managing finances, the level of public debt, and the sustainability of that debt. Together, these indicators provide a broad picture of how well states are managing their finances and public resources.
In the latest edition of the report, Tripura has been placed among the 18 leading states evaluated in the Index. In the category of North-Eastern and Himalayan states, Arunachal Pradesh secured the first position, followed by Uttarakhand, while Tripura ranked third. The ranking reflects the state’s efforts in maintaining fiscal discipline, improving revenue generation, managing expenditure, and maintaining debt sustainability.
Among the larger group of 18 major states assessed in the report, Odisha secured the top position. Goa and Jharkhand followed in the second and third positions respectively.
The second edition of the Fiscal Health Index has expanded its coverage to include 10 North-Eastern and Himalayan states, making the analysis more inclusive and reflective of the fiscal situation across different regions of the country. This expansion allows policymakers and analysts to better understand the financial performance of smaller and geographically distinct states.
The report also highlights several areas where states can further improve their fiscal management. It stresses the need for stronger revenue mobilisation so that states can reduce their dependence on borrowing. It also recommends rationalising committed expenditure such as salaries, pensions and subsidies in order to create more fiscal flexibility for development spending.
In addition, the report emphasises the importance of improving the composition and effectiveness of capital expenditure so that government spending leads to long-term economic benefits. Strengthening fiscal transparency and improving public financial management systems are also seen as important steps to ensure sustainable fiscal outcomes.
