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Opinion: FHI 2026 – Mapping Bharat's Economic Future Amidst the Great Fiscal Divide
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FHI 2026 Reveals India's Fiscal Divide: States Face Mounting Debt Challenges
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News18
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17-03-2026, 20:04
FHI 2026 Reveals India's Fiscal Divide: States Face Mounting Debt Challenges
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NITI Aayog's FHI 2026 highlights significant fiscal divergence among Indian states, scoring 18 major states across five pillars.
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Odisha, Gujarat, and Maharashtra are top performers in fiscal health, demonstrating responsible financial management.
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States like Punjab, Andhra Pradesh, West Bengal, and Kerala show structural stress with high liabilities and poor expenditure quality.
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Tamil Nadu, despite strong economic growth, ranks low (13th) due to high welfare spending, rising debt, and poor expenditure quality.
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Aspirational states are caught in a cycle where committed expenditures crowd out developmental spending, hindering growth.
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