Fiscal health check: NITI Aayog's initiative will inform policymaking

The FHI covers 18 large states and has been developed with a focus on five sub-indices: The quality of expenditure, revenue mobilisation, fiscal prudence, debt index, and debt sustainability

Public debate in India over the coming days will be focused on the upcoming Union Budget, which will be presented by Union Finance Minister Nirmala Sitharaman on February 1. Since growth has slowed significantly over the past few quarters and the Indian economy is expected to expand 6.4 per cent this financial year compared to 8.2 per cent in 2023-24, stakeholders would look forward to how the government plans to revive growth. While the public interest in the Union Budget is understandable, the Indian economy and well-being of citizens to a large extent depend on how states perform. State governments