Consider the following statements regarding the Fiscal Health Index (FHI) 2025 report:
1. The FHI assesses states using five sub-indices, including Quality of Expenditure and Fiscal Prudence.
2. Odisha ranked first with an FHI score of 67.8, excelling in Debt Index and Debt Sustainability.
3. States like Punjab and Rajasthan led in capital expenditure, significantly impacting long-term developmental goals.
4. The report recommends adopting a comprehensive debt sustainability framework to reduce fiscal stress.
Which of the above statements is/are correct?
Explanation: Statements 1, 2, and 4 are correct. The FHI does assess states using five sub-indices, including Quality of Expenditure and Fiscal Prudence. Odisha ranked first with a score of 67.8, excelling in Debt Index and Debt Sustainability. The report recommends adopting a comprehensive debt sustainability framework. Statement 3 is incorrect. The report actually states that Punjab and Rajasthan lagged in capital expenditure, not led.
Explanation: Statements 1, 2, and 4 are correct. The FHI does assess states using five sub-indices, including Quality of Expenditure and Fiscal Prudence. Odisha ranked first with a score of 67.8, excelling in Debt Index and Debt Sustainability. The report recommends adopting a comprehensive debt sustainability framework. Statement 3 is incorrect. The report actually states that Punjab and Rajasthan lagged in capital expenditure, not led.