Dr Kiran Deep
New Delhi, March 11
NITI Aayog has urged Indian states to follow strict fiscal discipline under the Fiscal Responsibility and Budget Management Act (FRBM), warning that widening revenue deficits could weaken their financial stability.
In its Fiscal Health Index (FHI) 2026 report for the financial year 2023–24, the government’s policy think tank said state governments should manage expenditure carefully, broaden the Goods and Services Tax base and improve their own tax collection capacity.
The FRBM framework aims to regulate the country’s debt levels by limiting fiscal and revenue deficits as a share of gross domestic product.
According to the report, states facing rising revenue deficits should prioritise aligning spending with sustainable revenue growth.
The index ranked Odisha, Goa, Jharkhand, Gujarat, Maharashtra, Chhattisgarh, Telangana, Uttar Pradesh, Karnataka and Madhya Pradesh among the top ten fiscally sound states.
Some states, including Bihar, Karnataka and Telangana, showed a modest improvement in their fiscal position.
However, Punjab, West Bengal and Kerala remained among the weakest performers in the index, highlighting persistent fiscal challenges.
The report emphasised that stronger fiscal management and better revenue mobilisation would be essential for states to maintain sustainable economic growth.
T
New Delhi, September 29 Congress General Secretary in-charge of Punjab, Sachin Pilot, on Tuesday criticised…
Two universities in Punjab. Two student protests. Two outbreaks of violence within days of each…
Five-day banking remains key demand; PLI scheme already kept in abeyance by government Chandigarh, September…
What happened at Chitkara University on September 25 and what followed at Lovely Professional University…
