What factors determine the fiscal health index of states in India according to NITI Aayog

The fiscal health index of states in India, as per NITI Aayog, is determined based on factors such as revenue, expenditure, borrowing, and debt. Top-performing states in NITI Aayog's fiscal health index include:

• Efficient revenue management: States that effectively manage revenue through diverse sources.
• Prudent expenditure practices: States that spend judiciously and prioritize essential sectors.
• Low borrowing levels: States with controlled borrowing to manage debt effectively.
• Healthy debt sustainability: States that maintain a sustainable level of debt relative to their revenue generation capacity.

Top-ranking states often demonstrate a balanced approach towards revenue generation, expenditure management, borrowing practices, and debt sustainability, leading to a strong fiscal health index.