Archive · 26 Jun 2025
Fiscal Health Index to Encourage States to Cut Debt
The government is using a ranking system called the Fiscal Health Index to encourage states to manage their money better, specifically aiming to reduce how much debt they have.
This index helps measure how well states are doing financially.
New numbers for things like the prices of goods and services (CPI) and the country's economic output (GDP) are coming soon, which will help the government make better decisions.
The government is also using technology, like AI, to collect and analyze data more efficiently.
This should help the government make better decisions, particularly as they work towards making India a developed country.
The Fiscal Health Index (FHI) aims to encourage states to lower debt-to-GSDP ratios.
MoSPI will update key macroeconomic indicators like CPI, GDP, and IIP with new base years.
The new GDP series is scheduled for release on February 27, 2026, with 2022-23 as the base year.
MoSPI is exploring alternative data sources and using AI to improve data collection and analysis.
The Ministry is increasing recruitment of statistical officers and adapting to technology.
- Who
- Rao Inderjit Singh (Union Minister of State) and MoSPI.
- What
- MoSPI is utilizing the FHI and data to encourage states to lower debt ratios and improve data collection, including AI use.
- When
- The new GDP series is scheduled for release on February 27, 2026.
- Where
- India.
- Why
- To promote fiscal prudence and improve data-driven policy decisions for India's economic goals.
Government Initiatives
Economic Development
Fiscal Health Index
Government Initiatives
Encouraging States to lower their debt-to-GSDP ratios.
Economic Development
Promoting transparency, accountability, and prudent fiscal management.
Data Collection Methods
Government Initiatives
Implementing modern technology like AI to strengthen the statistical system.
Economic Development
Adapting technology for data-driven policy decisions.
- Index Focus
- Fiscal performance of Indian states
- FHI Goal
- Promoting transparency, accountability, and prudent fiscal management
- GDP Base Year
- 2022-23 (scheduled to be released on February 27, 2026)
- CPI Base Year
- 2024 (expected publication in Q1 2026)
- Target Debt Reduction
- From 2026-27
- Current Debt to GDP Ratio
- 57.1%
- Government Debt Target
- 50% (by 2026-27)