Consider the following statements regarding the Fiscal Health Index (FHI) -
- It is an annual report released by the Department of Economic Affairs, Ministry of Finance.
- It evaluates states based on five key pillars, including Quality of Expenditure and Debt Sustainability.
- It classifies states into four tiers: Achievers, Front Runners, Performers, and Aspirational.
Select the correct codes from below
Explanation - Fiscal Health Index was introduced by NITI Aayog. It provides a systematic framework to evaluate the fiscal performance of 18 major Indian states, 10 North-Eastern and Himalayan states. It provides a comprehensive and comparable assessment of the fiscal performance of Indian states. The Index has been designed as a data-driven framework to evaluate fiscal soundness, guide reforms, and promote evidence-based fiscal policymaking across states. It is built on five key pillars of fiscal health: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability. The index classifies states into four tiers. Achievers: These are states with strong fiscal discipline, high own-tax revenues, low deficits, and manageable debt; Front Runners: These states maintain broadly sound finances but fall short of the top tier on one or more indicators; Performers: They occupy the middle ground, with mixed results across the five pillars. Aspirational: These states are those facing the most significant fiscal stress, characterised by persistent deficits, high debt, and limited revenue capacity.
Explanation - Fiscal Health Index was introduced by NITI Aayog. It provides a systematic framework to evaluate the fiscal performance of 18 major Indian states, 10 North-Eastern and Himalayan states. It provides a comprehensive and comparable assessment of the fiscal performance of Indian states. The Index has been designed as a data-driven framework to evaluate fiscal soundness, guide reforms, and promote evidence-based fiscal policymaking across states. It is built on five key pillars of fiscal health: Quality of Expenditure, Revenue Mobilisation, Fiscal Prudence, Debt Index, and Debt Sustainability. The index classifies states into four tiers. Achievers: These are states with strong fiscal discipline, high own-tax revenues, low deficits, and manageable debt; Front Runners: These states maintain broadly sound finances but fall short of the top tier on one or more indicators; Performers: They occupy the middle ground, with mixed results across the five pillars. Aspirational: These states are those facing the most significant fiscal stress, characterised by persistent deficits, high debt, and limited revenue capacity.