In terms of financial health, states like Odisha, Chhattisgarh, Goa, Gujarat seem to be in a strong position, whereas the financial health of Punjab, Andhra Pradesh, Bengal, Kerala is poor. The government of these states will have to make a lot of efforts to improve their financial health.

Financial health index of 18 big states released

NITI Aayog has released the index of financial health of 18 big states of the country on Friday. This index has been prepared on the financial performance of the states in the financial year 2022-23. In this, Odisha stood first while Punjab stood last. Chhattisgarh stood second and Goa stood third. Andhra Pradesh stood second from the bottom while Bengal stood third from the bottom.

According to this index report, the financial condition of Punjab, Bengal and Kerala has been challenging for the last nine years. On the other hand, the financial condition of Jharkhand has become stronger than before. Jharkhand is at the fourth place in the index. Uttar Pradesh is at the seventh place, Bihar at the 13th place, Haryana at the 14th place and Madhya Pradesh at the ninth place.

The index was prepared keeping in mind five parameters

The index of financial health has been prepared keeping in mind five parameters. These include quality expenditure, revenue raised by the states through their own efforts, fiscal deficit situation, total debt on the states and the increase or decrease in debt repayment. Quality expenditure includes expenditure on infrastructure development along with social works like education and hospitals.

Many states are not able to generate enough revenue on their own

According to the report of the commission, states like Punjab, Kerala and Bengal have been trapped in the debt trap for the last several years. These states are not able to raise sufficient revenue at their level. Due to the high rate of loan repayment, much less money is being spent on capital and social development works in these states as compared to other states.

Haryana's position is not good in terms of debt index

There is an increase in quality expenditure in Bihar, but Bihar is still not able to raise sufficient revenue on its own. Bihar's fiscal deficit is also high. States like Jharkhand, Goa, Gujarat are in a good position in managing fiscal deficit. Haryana's position is not good in terms of debt index.

States' Financial Health Index

State ---------Place

Odisha ----- first

Chattisgarh ---- second

Goa ----- Third

Jharkhand ---- Fourth

Gujarat ---- Fifth

Maharashtra ---- Sixth

Uttar Pradesh ---- 7th

Telangana ---- 8th

Madhya Pradesh ---- 9th

Karnataka --- 10th

Tamil Nadu --- 11th

Rajasthan ---- 12th

Bihar ---- 13th

Haryana ---- 14th

Kerala ---- 15th

Bengal ---- 16th

Andhra Pradesh ---- 17th

Punjab ----- 18th