States handle two-thirds of public spending and one-third of revenue. Their fiscal health is critical for India’s economy
NITI Aayog’s index ranks 18 states on five parameters, including debt, revenue, and spending quality
Odisha leads with fiscal discipline; Punjab struggles with rising debt and deficits
States’ debt in 2023-24 was 28.5 per cent of GDP, far above recommended levels
Welfare schemes and political pressures threaten productive spending in states
Stronger fiscal rules and better subsidy tracking can ensure sustainable finances