Bhubaneswar: Odisha has retained the number one spot in the latest NITI Aayog’s Fiscal Health Index (FHI) 2026, which evaluated state finances for the fiscal year 2023-24.
The eastern state secured an impressive overall score of 73.1, marking an improvement from its previous performance and reinforcing its position as a model of fiscal discipline among India’s 18 major states.
Goa and Jharkhand were second and third with a score of 54.7 and 50.5 respectively.
According to the report, the Achiever category, comprising Odisha, Goa and Jharkhand, is characterised by high share of own tax revenue, generally exceeding 60%, relatively large capital outlay of around 4–5% of Gross State Domestic Product (GSDP), low fiscal deficits below 3% of GSDP, moderate debt levels under 25% of GSDP and relatively manageable interest burdens.
In 2023-24, Odisha’s fiscal deficit remained contained at 1.73% of GSDP. Its debt-to-GSDP ratio fell sharply from 23.46% in 2019–20 to 14.39% in 2023–24, demonstrating that the pace of economic expansion clearly outpaced debt accumulation. Interest payments also eased considerably, dropping from 5.97% of revenue receipts in 2019–20 to only 2.88% in 2023–24, a strong sign of reduced strain on state revenues.
Reacting to the report, BJD president Naveen Patnaik, who served as the CM of Odisha from 2000-2024, said that Odisha not only led the nation but was also comprehensively ahead of other states. “It is matter of great satisfaction for me that Odisha had charted this journey from near bankruptcy in 2000 to lead the chart in every parameter which no ‘Double Engine’ govt could achieve in the country. From a precarious fiscal situation to becoming the top performer in fiscal health, Odisha’s journey reflected vision, and transformative governance under the principles of 5T,” he posted on X.
Naveen emphasised that Odisha’s consistent fiscal discipline enabled the state to independently fund numerous people-centric programmes. These include BSKY, KALIA, Mission Shakti, skill development initiatives, the Odisha School Transformation program, tribal development efforts, disaster management, infrastructure projects, irrigation schemes, and poverty alleviation measures, while also fully supporting the state’s own food security programme “without waiting for handouts from the Centre.”
He, however, voiced serious concern over the current state of affairs. “But now I am worried with the way the Odisha double engine govt is mismanaging finances, pushing the state onto the path of bankruptcy and reversing 25 years of development progress.”
